What is the fully indexed rate

Assignment Help Financial Management
Reference no: EM13872177

A borrower is considering a 1-year adjustable rate mortgage of $250,000 that starts at 2.5%, 30 year amortization. The margin is 2.25%. The annual change caps are 2% per year. The current index is 1.25%. The life cap is 6% over the start rate. What is the initial monthly payment?

2. What is the fully indexed rate?

3. At the end of year 1, what is the maximum allowed interest rate?

4. If the index moves up to 1.75%, what is the monthly payment for year 2?

Reference no: EM13872177

Questions Cloud

Average radius of the pipe : Then they release a dye in the water at point A and find that it takes 88.8s to reach point B. What is the average radius of the pipe within thehill?
Write experiences across ethnic or national barriers : What do you think are the most important barriers that inhibit communication between people of different ethnicities or nationalities? How would you recommend overcoming those barriers?
Calculate the metrics of capital budgeting : Identify relevant incremental cash flows - Calculate cost of capital (k-wacc) to use as the discount rate and calculate the metrics of capital budgeting: Net Present Value, Profitability Index,
Describe how to develop a subroutine : Describe how to develop a subroutine.
What is the fully indexed rate : A borrower is considering a 1-year adjustable rate mortgage of $250,000 that starts at 2.5%, 30 year amortization. The margin is 2.25%. The annual change caps are 2% per year. The current index is 1.25%.  What is the fully indexed rate?
Describe the services that efulfillment provides : Watch the video, "Take a tour of eFulfillment Service" and answer the following questions: https://youtu.be/zkldm7qyQCg, Describe the services that eFulfillment provides
Stream of water flowing : Figure shows a stream of water flowing through a hole at depth h = 1.0 cm in a tank holding water to height H = 40 cm.
What is the rate of discount and the equivalent yield : A one-month bill for $100,000 is issued at a discount of $1000. What is the rate of discount? the equivalent yield? the price at which the bill will trade with two weeks remaining to maturity (market interest rates unchanged)?
What is rss? why and who should use rss? : What is RSS? Why and who should use RSS?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd