Question

helllp please
Aimee and Ben are purchasing a condominium and are financing $610,000. The mortgage is a 20-year 3/1 ARM at 4.15% with a cap structure of 1.5/10. What will their payments be for the first 3 years?

Answer 1

For the first three years, the interest rate will be 4.15% and there won't be any adjustments (until year 4). So you don't have to worry about any adjustments in interest rate


The monthly payment formula is a large formula (at the link below)

http://www.mtgprofessor.com/formulas.htm

but luckily, there are calculators out there to help speed things along

Answer 2

here is one calculator

http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

you would type in

610000 into the "Mortgage amount:" box
20 into the first "Mortgage term: " box
4.15 into the "Interest rate: " box

and then hit calculate to get the monthly payment

Answer 3

http://answers.yahoo.com/question/index?qid=20120426165226AA54644