McKenzie obtains a mortgage for $150,000 with the following terms:
-20 year 6/1 ARM at 3.5% with a 2/7 cap structure
-Initial monthly payment: $869.94
What will be the balance of the loan at the end of the initial interest rate period?
A. $121,689.86
B. $131,117.25
C. $115,409.62
D. $87,364.35
@ribhu

Question

McKenzie obtains a mortgage for $150,000 with the following terms:
-20 year 6/1 ARM at 3.5% with a 2/7 cap structure
-Initial monthly payment: $869.94
What will be the balance of the loan at the end of the initial interest rate period?
A. $121,689.86
B. $131,117.25
C. $115,409.62
D. $87,364.35
@ribhu

ribhu · Answer

it comes out to be B

ribhu · Answer

u also try and calculate using the formula