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Question
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 6%. Assume that the loan allows for negative amortization. What would be the outstanding balance on the loan at the end of Year 3?
A) $190,074
B) $192,337
C) $192,812
D) $192,926
Answer
This answer is hidden. It contains 19 characters.
Related questions
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7%
8%
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.564474 A) Between 6% and 7%
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A transaction in which a borrower sells a property for less than the current balance of the loan and then provides all of the proceeds to the sale to the lender, typically in full satisfaction of the loan.
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Q:
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$
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$
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