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Your Mortgage Is an ARM with a 1 Year Adjustment

Question 215

Multiple Choice

Your mortgage is an ARM with a 1 year adjustment interval,4% margin,and a 2% periodic cap.Your initial APR on this loan was 4.5%.Over the last 5 years the market rates of interest have risen dramatically.The current interest rate index for your loan is 8.5 %.What APR are your monthly payments being calculated on today?


A) 4.5%
B) 8.5%
C) 10.5%
D) 12.5%

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