For a household with a 5/1 ARM that was originated with a 4% interest payment and indexed on LIBOR +250 basis points (2.

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answerhappygod
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For a household with a 5/1 ARM that was originated with a 4% interest payment and indexed on LIBOR +250 basis points (2.

Post by answerhappygod »

For a household with a 5/1 ARM that was originated with a 4%
interest payment and indexed on LIBOR +250 basis points (2.5
percentage points). What happens to monthly payments in year 4 if
LIBOR rate is 2.5%?
a. decrease
b. stay the same
c. increase
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