Lisa bought a home with an adjustable-rate mortgage. The margin on the loan is 4.2% and the rate cap is 5.75% over the life of the loan. If the current index rate is 6.6%, what is the calculated interest rate of the ARM?
A) 9.5%
B) 10.8%
C) 6.75%
D) 12.5%
Correct Answer:
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Q18: Narrative 14-1
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Q19: Mortgage discount _, added to the cost
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Q21: Narrative 14-1
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Q22: You are purchasing a home for $220,000.
Q24: A house is selling for $190,000. A
Q25: A house is selling for $150,000. A
Q26: Narrative 14-1
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Q27: Narrative 14-1
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Q28: You bought a home with an adjustable-rate
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