Five years ago, Tom Brady signed a mortgage with following terms: Loan Amount...
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Five years ago, Tom Brady signed a mortgage with following terms:
Loan Amount = $700,000. Mortgage Length = 30 years. Payment to be made end of month.
Interest Rate: 5/1 ARM with an initial rate of 7.8%.
ARM Details: After 5-year period the rate will be reset annually.
Reset Rule one year LIBOR rate plus 2% margin.
Annual Cap = 1.8%, Lifetime Cap = 5.0%
Annual Floor = 1.2%, Lifetime Floor = 4.0%
Today is the 1st day of the 6th year Rate Reset day.
The latest LIBOR rate is 8.0%.
What is Tom Bradys monthly mortgage payment for the 6th year? Show work below
Today is the 1st day of the 7th year Rate Reset day.
The latest LIBOR rate is 4.0%,
What is Tom Bradys monthly mortgage payment for the 7th year? Show work below.
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You can see the logs in the Dashboard.