Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. You bought a home with an adjustable-rate mortgage. The margin on the loan is 3.5% and the rate cap is 6% over the life of the loan. If the current index rate is 7.2%, what is the maximum overall rate of your loan?

Question

Quizplus · Accepted Answer

The Answer of Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. You bought a home with an adjustable-rate mortgage. The margin on the loan is 3.5% and the rate cap is 6% over the life of the loan. If the current index rate is 7.2%, what is the maximum overall rate of your loan?

Narrative 14-2 For Problems in This Section, Use Table 14-1 from Your