Your purchased a property five years ago for $300,000. You financed 80 percent o

Question

Your purchased a property five years ago for $300,000. You financed 80 percent of the purchase price with a 5/1 ARM with monthly payments amortized over 30 years. The interest rate for the first five years was 6 percent.  The interest rate is tied to LIBOR and will adjust to 4 percent. What is your new monthly payment?  Assume that the following year the rate adjusts to 5 percent what is your new payment? Your purchased a property five years ago for $300,000. You financed 80 percent of the purchase price with a 5/1 ARM with monthly payments amortized over 30 years. The interest rate for the first five years was 6 percent.  The interest rate is tied to LIBOR and will adjust to 4 percent. What is your new monthly payment?  Assume that the following year the rate adjusts to 5 percent what is your new payment?

Explanation / Answer

the new payment will be $10,500 per annum

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.