A borrower takes out a 5/1 Hybrid ARM for $450,000 with an initial contract interest rate of 3.5%. The interest rate will adjust according to the 1 yr UST rate, plus a margin of 2%. At the first reset date, 1 yr UST 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 your answer to 2 decimal places.)

A borrower takes out a 5/1 Hybrid ARM for $450,000 with an initial contract interest rate of 3.5%. The interest rate will adjust according to the 1 yr UST rate, plus a margin of 2%. At the first reset date, 1 yr UST 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 your answer to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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