Answer Happy

Posted: **Wed May 18, 2022 11:21 pm**

: 15 A Borrower Takes Out A 30 Year Adjustable Rate Mortgage Loan For 200 000 With Monthly Payments The First Two Years 1 (19.75 KiB) Viewed 16 times

: 15 A Borrower Takes Out A 30 Year Adjustable Rate Mortgage Loan For 200 000 With Monthly Payments The First Two Years 2 (19.75 KiB) Viewed 16 times

15) A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 6%. Assume that the loan allows for negative amortization. What would be the outstanding balance on the loan at the end of Year 3? A) $190,074 B) S192,337 C) $192,812 D) $192,926