For a household with a 5/1 ARM that was originated with a 4% interest payment and indexed on LIBOR +250 basis points (2.
Posted: Wed May 18, 2022 11:07 pm
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
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