Adjustable-rate mortgage

Assignment Help Business Economics
Reference no: EM131163838

Sierra borrows $175,000 from Regional Home Finance Corporation to buy a home. The loan is a twenty-year, 3/1, adjustable-rate mortgage, with an initial interest rate of 4.0 percent for three years and potential increases of up to 3.0 percent to a cap of 11.0 percent. Before the loan is completed, the lender discloses the amount of the loan principal, the initial interest rate, the initial annual percentage rate, and associated fees and costs. Not disclosed are material details about the amounts of the payments when the interest rate changes. Before the first increase takes effect, Sierra decides that she wants to rescind the loan. What is a “twenty-year, 3/1, adjustable-rate mortgage”? Can Sierra rescind this loan? Why or why not?

Reference no: EM131163838

Questions Cloud

Determine what price katrinas candies should charge : determine what price Katrina's Candies should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.
Find the minimum uncertainty in the momentum of the object : If an atom has an electron in the n = 8 state with ml = 3, what are the possible values of l. An object is moving along a straight line, and the uncertainty in its position is 3.00 m. Find the minimum uncertainty in the momentum of the object. Find t..
Impact of computers in industries : Make a seven page PowerPoint document to discuss impact of computers in Industries. In your discussion, include the following
Calculate the force f required to hold the orifice plate : A 12-cm-diameter pipe, containing water flowing at 200 N/s, is capped by an orifice plate, as in Fig. P3.45. The exit jet is 25 mm in diameter. The pressure in the pipe at section 1 is 800 kPa (gage). Calculate the force F required to hold the ori..
Adjustable-rate mortgage : Sierra borrows $175,000 from Regional Home Finance Corporation to buy a home. The loan is a twenty-year, 3/1, adjustable-rate mortgage, with an initial interest rate of 4.0 percent for three years and potential increases of up to 3.0 percent to a cap..
What market structure best describes the structure under : What market structure best describes the structure under which your organization operates? Identify one challenge and one opportunity that arise from this and how the firm might use these for strategic advantage.
Explain why the companies fit into the respective categories : Choose four real-world companies to represent each market structure type: perfect competition, monopoly, oligopoly, and monopolistic competition. Explain why the companies fit into the respective categories that you have chosen.
Sticky-price model-the higher the average rate of inflation : Using the sticky-price model, the higher the average rate of inflation, the more frequently firms must adjust their prices, which implies that a high rate of inflation: Starting from long-run equilibrium in the dynamic model of aggregate demand and a..
Find the cone angle for which the restraining force : A liquid jet of velocity Vj and diameter Dj strikes a fixed hollow cone, as in Fig. P3.47, and deflects back as a conical sheet at the same velocity. Find the cone angle for which the restraining force

Reviews

Write a Review

Business Economics Questions & Answers

  What are the relative prices of apples in home

Suppose that Home has 100 workers, a marginal product of 4 making apples, and a marginal product of labor of 4 making shirts. Foreign has 100 workers, a marginal product of labor of 8 making apples and a marginal product of labor of 6 in shirts. In n..

  Approach the marketing strategy for particular product

Choose a specific product that you use on a daily basis (such as food items, toiletries, or your car). Who are you (demographics, psychographics, etc.)? What do you do with the product (consumption, storage, disposal, etc.)? Where do you purchase the..

  Restaurants around the world

More than 85% of McDonald's restaurants around the world are owned by independent franchisees.

  Competitive consumers who have the same endowment

Consider two competitive consumers who have the same endowment, with positive current income plotted on the horizontal axis and positive future income on the vertical axis. Each consumer’s current income is taxed at the rate t1 and future income is t..

  Q1 what happened why did you leave the question and

q1. what happened why did you leave the question and suddenly demand higher price?q2. how do i calculate the change in

  Problems associated with active discretionary fiscal policy

Some examples of political problems associated with active discretionary fiscal policy are.... [Select two] Recognition lag taxpayer-funded favors to special interests Action (administrative) lag Operational (impact) lag

  Announced intent to buy large numbers of treasury bonds

The federal government recently announced intent to buy large numbers of Treasury Bonds. Explain how the federal government expects this to improve the economy. Compare this to other companies buying their own stocks. Make a prediction as to the succ..

  Illustrates demand-supply of perfectly competitive industry

Draw a graph (hand-drawn is acceptable) that illustrates the demand and supply of a perfectly competitive industry. Indicate the following in your graph: the equilibrium price; the equilibrium quantity; the producer surplus if the industry is a monop..

  Therefore the quantity of loanable funds supplied increases

What do real interest rates account for that nominal interest rates do not? The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________. A higher interest rate makes more attractive. Ther..

  The loss to society resulting from a tax includes

The loss to society resulting from a tax includes the

  Which is the best definition of the short run

Which of the following is the best definition of the short run?

  Firm has decreasing returns

In the short-run, if a firm has decreasing returns, does it have increasing, constant, or decreasing marginal cost? Explain. What about if it has constant returns? Increasing returns? Explain.

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