A bank advertises a 3/1 ARM at 4.65% with a 3/9 cap. What is the maximum interest rate that can be charged during the fifth year?
Aimee and Ben are purchasing a condominium and are financing $415,000. The mortgage is a 20-year 3/1 ARM at 2.75% with a cap structure of 1.5/8. What will their payments be for the first 3 years?
