Faculty Websites - Tarleton State University
Example Comparing ARM Payments Before and After a Rate Adjustment. Suppose you pay $20,000 down on a $180,000 house and take out a 1-year ARM for a 30-year term. The lender uses the 1-year Treasury index (presently at 4%) and a 2% margin. (a) Find your monthly payment for the first year. First-year monthly payment = $959.28. ................
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