Business, 04.10.2020 06:01 AlmightyThadd
A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.2%. After the first year, the interest rate will adjust each year, using 1 yr LIBOR as the index, plus a margin of 175bp. The price of the property is $8,000,000 and the loan will have an initial LTV ratio of 75% At the first reset date, 1 year LIBOR is at 3%. What is the borrower’s payment during the 2nd year of the loan?
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A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.2%. After the first...
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