Outstanding amount on an adjustable rate

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Reference no: EM131016048

Assume you have a $150,000 outstanding amount on an adjustable rate loan from BCN bank, which amortizes over 10 years. Your monthly payment is based on 1% over the current 10 year treasury rate or roughly 2.98% APR. Your monthly income allows you to pay up to $1800 per month. How much can the interest rate increase before you have to default?

Reference no: EM131016048

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