A 3/1 ARM is made for $250,000 at 7 percent with a 30-year maturity. Fixed payments are to be made monthly for three years, after which the interest rate will reset. Refer to the original question (1, 2), assuming the INTEREST RATE CAP of 2%, what would new payments be beginning in year 4 if the interest rate instead rose to 10%? Hint: the capped rate does not allow the new rate to go above certain point. (question one was If the loan is fully amortizing, what will be the monthly payments? 1663.26; and question two was What will be the loan balance after three years? 241,817.41) Please asnwer as excell format using rate, NPER. PV, FV, and PMT
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A 3/1 ARM is made for $250,000 at 7 percent with a 30-year maturity. Fixed payments are to be made monthly for three years, after which the interest rate will reset. Refer to the original question (1, 2), assuming the INTEREST RATE CAP of 2%, what would new payments be beginning in year 4 if the interest rate instead rose to 10%? Hint: the capped rate does not allow the new rate to go above certain point.
(question one was If the loan is fully amortizing, what will be the monthly payments? 1663.26; and question two was What will be the loan balance after three years? 241,817.41)
Please asnwer as excell format using rate, NPER. PV, FV, and PMT
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