30 year 4/1 ARM at 5.5% with a 2/6 cap structure
Initial monthly payment: $1,987.26
What will be the balance of the loan at the end of the initial interest rate period?

Question

30 year 4/1 ARM at 5.5% with a 2/6 cap structure
Initial monthly payment: $1,987.26
What will be the balance of the loan at the end of the initial interest rate period?

amistre64 · Answer

the same as the balance for a fixed 30 year loan after 4 years

anonymous · Answer

Marcos obtains a mortgage for $350,000 with the following terms:

anonymous · Answer

$329,484.18

 $254,611.45

 $323,612.11

 $320,806.22

amistre64 · Answer

$$\Large B_o(1+\frac{.055}{12})^{4*12}-P\frac{1-(1+\frac{.055}{12})^{4*12}}{1-(1+\frac{.055}{12})}$$

anonymous · Answer

these are the answers that i have to choose from

anonymous · Answer

can you help me

amistre64 · Answer

i just did ... use that setup by plugging in the initial balance and the payments

anonymous · Answer

$323,612.11
thats what i got.. is it correct??

amistre64 · Answer

thats not what i get .... im about 6000 more than that

amistre64 · Answer

your results are for 5 years,  not 4

anonymous · Answer

okay i think i  see what i did wrong i got $329,484.18

anonymous · Answer

thank you

amistre64 · Answer

youre welcome