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Sagot :
According to the adjustable-rate mortgage The new monthly payment in year 8 of the loan is $1292.
According o the statement
we have given that the
Remy obtains a 30-year mortgage in the amount of $625,000 And
She secures a 7/1 ARM at an initial interest rate of 3%. Her initial monthly payment is $2,635.03.
And we have to find the new monthly payment when its interest rate increased to the 4.925%.
So, For this purpose we know that the
An adjustable-rate mortgage (ARM) is a loan with an interest rate that changes.
The amount in which she bought mortgage = 625,000
Interest rate = 3%
Initial amount = 2635.03
From this it clear that the
The amount she pays in 7 years = 2635.03*7
The amount she pays in 7 years = 18445.21
The left amount = 625,000 - 18445.21
The left amount = 606554
It means the rate of interest increased on the amount 606554$
So, According to the 4.925% interest the monthly payment will become
amount on interest rate 4.925% = 4.925% *606554/23 years
amount on interest rate 4.925% = $1292.
So, According to the adjustable-rate mortgage The new monthly payment in year 8 of the loan is $1292.
Learn more about adjustable-rate mortgage here
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