You have taken out a $150,000, 5/1 ARM. The initial rate is 2%. The interest rate...

You have taken out a $150,000, 5/1 ARM. The initial rate is 2%. The interest rate after the initial lock period is 4%. The term on this 5/1 ARM is 30 years. What is the total amount of interest paid during the initial lock period?

Expert Solution

jeff jeffy answered 1 year ago

You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked...

You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in for five years. Calculate the payment after recasting the loan (i.e., after the reset) assuming the interest rate after the initial lock period is 8.0%. (Note: the term on this 5/1 ARM is 30 years.)

You have taken out a $425,000, 3/1 ARM. The initial rate of 5% (annual) is locked...

You have taken out a $425,000, 3/1 ARM. The initial rate of 5% (annual) is locked in for three years and is expected to increase to 6.75% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years.)

You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in for 5 years.

You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in for 5 years. Calculate the payment after recasting the loan (i.e., after the reset) assuming the interest rate after the initial lock period is 8.0%. (Note: the term on this 5/1 ARM is 30 years) A. $1,684.59 B. $1,784.79 C. $1,887.75 D. $2,138.02

You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked...

You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked in for three years. Determine the owner's equity in the property after three years if the market value of the property at the end of year 3 is $400,000. The interest rate after the initial lock period is 6.5%. (Note: The term on this 3/1 ARM is 30 years.)

Solve using excel: A. You have taken out a $225,000, 3/1 ARM. The initial rate of...

Solve using excel: A. You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked in for 3 years and is expected to increase to 6.5% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years)   B. Given the following information, calculate the Effective Borrowing Cost (EBC). Loan amount: $175,000, Term: 30 years, Interest rate: 7 %, Payment: $1,164.28, Discount points:...

You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked...

You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked in for three years and is expected to increase to 6.5% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years.) A) $1959.99 B) $1,874.45 C) $1,422.15 D) $1,320.19

A borrower takes out a 5/1 Hybrid ARM for $200,000 with an initial contract interest rate...

A borrower takes out a 5/1 Hybrid ARM for $200,000 with an initial contract interest rate of 3.5%. The interest rate will adjust according to the 1 yr LIBOR rate, plus a margin of 2%. At the first reset date, 1 yr LIBOR is at 1%. What will the borrowers’ monthly payment be immediately after the first reset? (State the payment as a positive number. Unless otherwise stated, you can assume 5/1 ARMs have a term of 30 years. Round...

An ARM is made for $150,000 for 30 years with the following terms: Initial interest rate...

An ARM is made for $150,000 for 30 years with the following terms: Initial interest rate = 3% Index = 1-year Treasuries Payments reset each year Margin = 2 percent Fully amortizing Interest rate cap = 1 percent annually; 3 percent lifetime Estimated forward rates: BOY 2 4.00% BOY 3 5.25% BOY 4 6% BOY 5 6.50% Compute payments and balances for each of the years 1-5.

You have taken out a $100,000, one-year ARM. The teaser rate in the first year is...

You have taken out a $100,000, one-year ARM. The teaser rate in the first year is 4.5% (annual). The index interest rate after the first year is 3.25% and the margin is 2.75%. (Note: The term on this ARM is 30 years). There is also a periodic (annual) rate cap of 1.00%. Given this information, determine the monthly mortgage payment you would be scheduled to make in month 13 of the mortgage loan's term. A) $321.64 B) $566.26 C) $506.69...

You have taken out a $250,000, one-year ARM. The teaser rate in the first year is...

You have taken out a $250,000, one-year ARM. The teaser rate in the first year is 3.75% (annual). The index interest rate after the first year is 2.75% and the margin is 2.50%. (Note: The term on this ARM is 30 years). There is also a periodic (annual) rate cap of 2.00%. Given this information, determine the monthly mortgage payment you would be scheduled to make in month 13 of the mortgage loan's term.

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