A borrower took out a $1,450,000 30-year fully amortizing conforming adjustable rate mortgage loan with an index of the one year U.S. Treasury and a 2.5% margin from the Wells Fargo Bank to buy a condo in Park City, Utah. The loan has a teaser rate of 1.5% for the first year, after which the interest rate resets annually with 2% annual and 6% lifetime interest rate increase caps, and the lender charges a one point loan origination fee and an additional $540 in closing costs to the borrower that are deducted from the loan proceeds at closing. On the first reset date, the one year U.S. Treasury rate was 4.75%. What would be the monthly payment for the second loan year? $6,511.15 $5,004.25 $6,337.97 $6,461.99

A borrower took out a $1,450,000 30-year fully amortizing conforming adjustable rate mortgage loan with an index of the one year U.S. Treasury and a 2.5% margin from the Wells Fargo Bank to buy a condo in Park City, Utah. The loan has a teaser rate of 1.5% for the first year, after which the interest rate resets annually with 2% annual and 6% lifetime interest rate increase caps, and the lender charges a one point loan origination fee and an additional $540 in closing costs to the borrower that are deducted from the loan proceeds at closing. On the first reset date, the one year U.S. Treasury rate was 4.75%. What would be the monthly payment for the second loan year? $6,511.15 $5,004.25 $6,337.97 $6,461.99