What is the inital monthly payment

Assignment Help Finance Basics

Reference no: EM13854940

(Q1)"A borrower is considering a 1-year adjustable rate mortgage of $250,000 that starts at 2.5%, 30 year amortization. The margin is 2.25%. The annual change caps are 2% per year. The current index is 1.25%. The life cap is 6% over the start rate. What is the inital monthly payment?"

(Q2)What is the fully indexed rate? [Format Answer as a percentage - X.XX]

(Q3)"At the end of year 1, what is the maximum allowed interest rate? [Format Answer as a percentage - X.XX]"

(4)If the INDEX moves up to 1.75%, what is the monthly payment for year 2? [WARNING: The loan balance is paid down a bit during the first year.]

Reference no: EM13854940

Questions Cloud

Explore non-pornographic sexual websites : Participate in small group discussions with other classmates. Explore non-pornographic sexual websites. See list of recommended websites. You are not limited to these websites. Accept some of my challenges

Derive bert demand schedule : a. From this information, derive Bert's demand schedule. Graph his demand curve for bottled water.

Identify an instance of a mental set from your everyday life : Identify an instance of a mental set from your everyday life. In your example, specify how strategies that at one time were adaptive or successful eventually became undesirable

The direct capitalization approach : An office building leases for $18 per square foot, has a 7% vacancy rate, and all operating expenses including reserve for replacement and property taxes are $5 per foot. The overall capitalization rate for office buildings in this market is estimate..

What is the inital monthly payment : Q1)"A borrower is considering a 1-year adjustable rate mortgage of $250,000 that starts at 2.5%, 30 year amortization. The margin is 2.25%. The annual change caps are 2% per year. The current index is 1.25%. The life cap is 6% over the start rate. Wh..

How many pain are sold at that price : Compute the new equilibrium and has the decision to break the firm into two increased consumer surplus

What is the right tail percentile required to reject null : What is the right tail percentile required to reject the null hypothesis?

Is the premium jeans industry an attractive market : Is the premium jeans industry an attractive market? Develop an understanding of the industry structure and market dynamics.

Prevention or treatment of killer diseases : How would you dispute an assertion that psychology has little to offer in the prevention or treatment of killer diseases, such as heart disease and cancer? Explain

User Account

All Pages