A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of
Posted: Thu May 19, 2022 12:33 am
A borrower takes out a 30-year adjustable rate mortgage loan for
$200,000 with monthly payments. The first two years of the loan has
an initial rate (“teaser” rate) of 4%; however, after the initial 2
years, the rate can reset (with an annual rate cap of 2%). On the
reset date, the teaser rate will go from 4% to 5%. What is the
monthly payment for the first two years of the loan (rounded)?
A) $882
B) $1067
C) $955
D) $854
$200,000 with monthly payments. The first two years of the loan has
an initial rate (“teaser” rate) of 4%; however, after the initial 2
years, the rate can reset (with an annual rate cap of 2%). On the
reset date, the teaser rate will go from 4% to 5%. What is the
monthly payment for the first two years of the loan (rounded)?
A) $882
B) $1067
C) $955
D) $854