Monday
December 22, 2014

Homework Help: math

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, letís 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.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Loans - A borrower received a 30-year ARM mortgage loan for $120,000. Rate caps...
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...
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 ...
Math - 1.--Cody and Carolyn have a 20/7 balloon mortgage for $216,000 with a ...
public finance - Your annual income is $50,000. You want to take out a mortgage ...

Search
Members