Help me?
Leah is purchasing a condominium and is financing $515,000 with a 20-year 5/1 ARM at 5.25% with a 1/12 cap structure. What will her payments be at the beginning of year 6?

Question

Help me?
Leah is purchasing a condominium and is financing $515,000 with a 20-year 5/1 ARM at 5.25% with a 1/12 cap structure. What will her payments be at the beginning of year 6?

anonymous · Answer

@jim_thompson5910???

jim_thompson5910 · Answer

were you able to get anywhere?

anonymous · Answer

No I am all new to this, so stuck /: I have a few I'm stuck on

jim_thompson5910 · Answer

ARMs are tricky and a pain because the interest rate goes up every year (after the 5 year mark) in this case

anonymous · Answer

Lol

jim_thompson5910 · Answer

but luckily there are calculators that simplify things greatly like this one http://www.calcxml.com/calculators/adjustable-rate-mortgage-calculator

jim_thompson5910 · Answer

tell me what you get with that calculator

anonymous · Answer

$609,470.. Sorry I took so long

jim_thompson5910 · Answer

its fine, what do you see in month 61

anonymous · Answer

What do you mean ?

jim_thompson5910 · Answer

sorry lost connection for a while

jim_thompson5910 · Answer

but you look at month 61 and that will tell you how much you pay at the start of year 6

anonymous · Answer

I'm sorry I'm confused

anonymous · Answer

Correct answer: $3701.45