PART 1. Assume a $100,000 interest-only ARM with a 30-year maturity and an initial rate of 6 percent. If at the reset da

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answerhappygod
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PART 1. Assume a $100,000 interest-only ARM with a 30-year maturity and an initial rate of 6 percent. If at the reset da

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PART 1. Assume a $100,000 interest-only ARM with a 30-year
maturity and an initial rate of 6 percent. If at the reset date
(1st year) the index has increased and the new interest rate
becomes 8 percent, what is the new monthly payment?
PART 2. Following my calculation for years 1 and 2, what would
be the payment adjustments and loan balances for years 3 to 5?
**** Part 2 is the answer I need
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