Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. tim wants to buy an apartment that costs $1,500,00

Tim wants to buy an apartment that costs $1,500,000 with an 85% LTV mortgage. Tim...

80.2K

Verified Solution

Question

Finance

Tim wants to buy an apartment that costs $1,500,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. There are no caps. The index was 1% at the time of origination and remained at 1% during every rate reset. Tim also had to pay 3.0 points for this loan.

Compute the true APR (annualized IRR) for this loan. Assume the rate resets after 36 months and then remains constant for the remainder of the loan term.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In ?ABC, if sin A =4/5 and tan A=4/3, then what is cos A?A. 3/5B.4/5C.3/4D.5/3

Geometry
Q

1.a specific receptor protein on the plasma membrane defines the target cell [ Choose ]        ...

Medical Sciences
Q

Imagine you are a punter on a football team and the coach tells you to give...

Physics
Q

A wire of length 2 m and diameter 1 mm stretched so that its length...

Physics
Q

For each question enter the correct numerical value in decimal notation truncated rou Answer to...

Physics
Q

Arrange these events in the order in which they occur in the story Rue is...

Statistics
Q

Calculate the derivative fint cos 2 de 1 de

Calculus
Q

Divide and simplify Assume that all expressions under radicals represent positive numbers 5 3 4...

Calculus
Q

For each given matrix A first compute det A Then interchange two rows of your...

Algebra
Q

Question 24 28 pts (TCO 5) What is an accrued liability? Please provide two examples....

Accounting
Q

PLEASE ANSWER ONLY PART C & E AND SHOW YOUR CALCULATIONS E16.10 (LO 2,...

Accounting
Q

At July 31, Larkspur, Inc. has the following bank information: cash balance per bank $8,080,...

Accounting