cA bank advertises an adjustable rate mortgage with the following terms: 25 year 5/1 ARM at 4% with a 2/7 cap structure What are the maximum interest rates for the 6th year and for the life of the mortgage?

Question

cA bank advertises an adjustable rate mortgage with the following terms:  25 year 5/1 ARM at 4% with a 2/7 cap structure  What are the maximum interest rates for the 6th year and for the life of the mortgage?

perl · Answer

do you have an online worksheet or online text book so i can answer this, im not sure

anonymous · Answer

no, there was no formula or anything in the lesson...

anonymous · Answer

this is an example tho

anonymous · Answer

Documentary Stamp Tax on Mortgage

Documentary stamp tax on the mortgage is $0.35 per $100 or portion thereof. As a decimal, this becomes 0.35 divided by 100 equals 0.0035.

The mortgage amount is $240,000. It is not necessary to round to the nearest hundred.

240,000 times 0.0035 equals $840.

Doug must pay a documentary stamp tax on the mortgage of $840.

anonymous · Answer

2800?