A borrower takes out a 25-year adjustable rate mortgage loan for $446242 with monthly payments. The first two years of t

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A borrower takes out a 25-year adjustable rate mortgage loan for $446242 with monthly payments. The first two years of t

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A borrower takes out a 25-year adjustable rate mortgage loan for$446242 with monthly payments. The first two years of the loan havea "teaser" rate of 4%; after that, the rate can reset with a 2%annual rate cap. On the reset date, the composite rate is 5%. Whatwould the Year 3 monthly payment be?
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