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RES 3200 Chapter 5 Adjustable and Floating Rate Mortgage Loans
RES 3200 Chapter 5 Adjustable and Floating Rate Mortgage Loans
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ARMs and Floating Rate Loans:
An Overview
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ARMs and Floating Rate Loans:
An Overview
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ARMs and Floating Rate Loans:
An Overview
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ARMs and Floating Rate Loans:
An Overview
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ARMs and Floating Rate Loans:
An Overview
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ARMs and Floating Rate Loans:
An Overview
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ARMs and Floating Rate Loans:
An Overview
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ARM Payment Mechanics
1st Month Payment:
• PV = $60,000.
• i = 8%.
• n = 30.
• FV = 0.
• Payment = ?
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ARM Payment Mechanics
1st Month Payment:
• Step 1
PV = $60,000.
i = 8% / 12 =.66666%.
n = 30 x 12 = 360.
FV = 0.
Payment = ?
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ARM Payment Mechanics
1st Month Mortgage Balance:
• Step 2
PMT = -$440.26.
i = 8% / 12 =.66666%.
n = 29 x 12 = 348.
FV = 0.
PV = ?
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ARM Payment Mechanics
30 Year Loan
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