Please answer the question and give the procss of calculation An adjustable rate mortgage with...
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Please answer the question and give the procss of calculation
An adjustable rate mortgage with a teaser start rate of 3.5%, an index of the 11th District COFI rate, a margin of 1.5%, and periodic and lifetime caps of 1/5 with semi-annual adjustments, would have a maximum interest rate of what at the beginning of the fourth loan year if the 11th District COFI rate is 7.5% at that time?
a) 8.5% b) 9.0% c) 10.5% d) 11.0%
An adjustable rate mortgage with a teaser start rate of 1.5%, an index of the 11th District COFI rate, a margin of 2.5%, and periodic and lifetime caps of 1/5 with semi-annual adjustments, would have a maximum interest rate of what at the beginning of the fourth loan year if the 11th District COFI rate is 7.0% at that time?
a) 5.5% b) 6.5% c) 8.5% d) 9.5%
An adjustable rate mortgage with a teaser start rate of 1.5%, an index of the 11th District COFI rate, a margin of 2.0%, and periodic and lifetime caps of 2/6 with semi-annual adjustments, would have a maximum interest rate of what at the beginning of the fourth loan year if the 11th District COFI rate is 6.5% at that time?
a) 5.5%
b) 6.5%
c) 7.5%
d) 8.5%
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