Question

5. Let's assume that a $355,000 mortgage has a maturity of 20 years and an interest rate of 5.75% and adjusts after year 3. The margin is 2% and the index is the CMT. The annual cap is 2% and the first year cap is 2% and the lifetime cap is 5%. What is the mortgage payment in year one? A. $2594.80 B. $2040.77 C. $2492.40 D. $1,984.09

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