

Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Material Type: Assignment; Class: Mortgage Bank Real Estate Fin; Subject: Finance; University: University of Texas - San Antonio; Term: Unknown 1989;
Typology: Assignments
1 / 3
This page cannot be seen from the preview
Don't miss anything!
and increases by 8% each anniversary date, how much interest will be paid in year 2, and what is the balance at the end of year 2?
30-year ARM mortgage with the features noted below. Payments and interest rates are adjusted each year. You will stay in the house for three years.
Initial Interest rate = X.XXX% (In effect for first year, i.e. Year 1) Index = XXXXX Margin = X.XXX% Interest Rate Cap: XXX/XXX Payment Cap: XX % up or down each year Negative Amortization: XXXXX Discount Points = X.X
Assume the index changes over time as noted in the table below.
Year Index Int. Rate Charged
Monthly Payment
Amount Paid to Interest
EOY Balance
1 N/A 2 y.yyy% 3 q.qqq%
The first 12 questions are to fill in the blanks in the table above
Initial Interest rate = 3.50% (In effect for first year, i.e. Year 1) Index = 4.18 Margin = 2.000% Interest Rate Cap: None Payment Cap: None Negative Amortization: N/A Discount Points = 1.
Assume the index changes over time as noted in the table below.
Year Index Int. Rate Charged
Monthly Payment
Amount Paid to Interest
EOY Balance
1 N/A 2 6.25% 3 8.75%
The first 12 questions are to fill in the blanks in the table above
Initial Interest rate = 3.50% (In effect for first year, i.e. Year 1) Index = 4.18 Margin = 2.500% Interest Rate Cap: 2%/6% Payment Cap: None Negative Amortization: N/A Discount Points = 3.
Assume the index changes over time as noted in the table below.
Year Index Int. Rate Charged
Monthly Payment
Amount Paid to Interest
EOY Balance
1 N/A 2 6.25% 3 8.75%
The first 12 questions are to fill in the blanks in the table above
Initial Interest rate = 3.50% (In effect for first year, i.e. Year 1) Index = 4.18 Margin = 2.750% Interest Rate Cap: None Payment Cap: 7.5% per year Negative Amortization: Allowed Discount Points = 2.
Assume the index changes over time as noted in the table below.
Year Index Int. Rate Charged
Monthly Payment
Amount Paid to Interest
EOY Balance
1 N/A 2 6.25% 3 8.75%
The first 12 questions are to fill in the blanks in the table above
for a 30-year term at 6% with 3 points. The lender will receive 40% of any increase in the property value over the next three years. The property is currently valued at 175,000. Assume the property increases in value at 9% per year.