A bank advertises an adjustable rate mortgage with the following terms:

20 year 4/1 ARM at 3% with a 3/7 cap structure
What are the maximum interest rates for the 5th year and for the life of the mortgage?

a 5th year: 6%; Lifetime: 7%
b 5th year: 6%; Lifetime: 10%
c 5th year: 4%; Lifetime: 7%
d 5th year: 4%; Lifetime: 11%

Question

A bank advertises an adjustable rate mortgage with the following terms:

20 year 4/1 ARM at 3% with a 3/7 cap structure
What are the maximum interest rates for the 5th year and for the life of the mortgage?

a 5th year: 6%; Lifetime: 7%
 b 5th year: 6%; Lifetime: 10%
 c 5th year: 4%; Lifetime: 7%
 d 5th year: 4%; Lifetime: 11%

Monoboi · Answer

this won't get solved i closed it

itsme · Answer

oh ok