Posted by **mahagoni** on Wednesday, October 3, 2012 at 1:42pm.

A borrower received a 30-year ARM mortgage loan for $120,000. Rate caps are 3/2/6 (first adjustment/subsequent adjustments/total over the life of the loan). The start rate was 3.50% and the loan adjusts every 12 months for the life of the mortgage. The index used for this mortgage is the LIBOR, which, for this exercise, letâ€™s say was 3.00% at the start of the loan, 5.00% at the end of the first year, and 4.50% at the end of the second year. The margin on the loan is 3.00%, which remains the same for the duration of the loan.

- math -
**Anonymous**, Friday, September 18, 2015 at 3:47pm
46

## Answer This Question

## Related Questions

- Loans - A borrower received a 30-year ARM mortgage loan for $120,000. Rate caps...
- Finance: Mortgages - A borrower received a 30-year ARM mortgage loan for $200,...
- Mortgage Class - A borrower received a 30-year ARM mortgage loan for $120,000. ...
- Math - please check my answer thanks :) Juan bought a home with an adjustable-...
- Business finance - In a discount interest loan, you pay the interest payment up...
- Math - You need to borrow $20,000 to buy a car. You can only afford to make ...
- Finance - Consider the following scenario: John buys a house for $150,000 and ...
- Finance - Consider the following scenario: John buys a house for $150,000 and ...
- Loan - Borrower Brown borrowed $8,000 from the bank. He will pay 6% simple ...
- Finance - Sauerfood company has decided to buy a new computer system with an ...

More Related Questions