Question

Hello o.o

Answer 1

Can someone correct my work ?

Answer 2

Chris and Justine are purchasing a townhouse and finance $112,900 with a 25-year 6/3 ARM at 4.85% with a 2/12 cap structure. What will their payments be at the beginning of the seventh year assuming they are charged the maximum interest rate for that year?

$759.70

$557.09

$674.48

$650.17

This question tricked me really good .
I only have to focus on this 25-year 6/3 ARM at 4.85% with a 2/12 cap structure. hold on while I post my repsone to the question :D

Answer 3

4.85%+2%=0.0685
0.0685+2%=0.0885 ?

Answer 4

then I 0.0885 + 12 = 0.2085 ?

Answer 5

Nevrmind the answer is $650.17

Answer 6

Use this http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx?%3fMSA=5960