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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 34
As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI, using Table 14-1 and the monthly PITI for the following mortgages.
Heather Gott bought a home with an adjustable-rate mortgage. The lender's margin on the loan is 3.5%, and the overall rate cap is 8% over the life of the loan.
a. If the current index rate is 3.75%, what is the calculated interest rate of the ARM?
b. What is the maximum overall ARM rate of Heather's loan?
Heather Gott bought a home with an adjustable-rate mortgage. The lender's margin on the loan is 3.5%, and the overall rate cap is 8% over the life of the loan.
a. If the current index rate is 3.75%, what is the calculated interest rate of the ARM?
b. What is the maximum overall ARM rate of Heather's loan?
Explanation
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Consider the lender's margin on the loan...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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