Currently, fixed mortgage rates are 8% for a 30-year mortgage. You checked and found a 3/1 adjustable-rate mortgage with a 30 year amortization of 6.0%. The terms of the adjustable-rate mortgage are: Index Rate: 5% Margin: 2% Annual cap 1% After three years, the index rate is now 3%, what is your new mortgage rate? O A. 5% O B. 6% C.7% D.8%

Currently, fixed mortgage rates are 8% for a 30-year mortgage. You checked and found a 3/1 adjustable-rate mortgage with a 30 year amortization of 6.0%. The terms of the adjustable-rate mortgage are: Index Rate: 5% Margin: 2% Annual cap 1% After three years, the index rate is now 3%, what is your new mortgage rate? O A. 5% O B. 6% C.7% D.8%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 7FPE

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Suppose you have taken out a $125,090 fully amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 6%. After your first mortgage payment, how much of the original loan balance is remaining? Multiple Choice $1,054.82 $120,60378 $1245701 $124.875.56
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