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Questions and Answers
What does the first number in '2/6 Caps' represent in the context of a 10/1 ARM?
What does the first number in '2/6 Caps' represent in the context of a 10/1 ARM?
- Subsequent adjustment cap annually
- Initial interest rate cap (correct)
- Discount rate
- Lifetime adjustment rate cap
In the context of a 10/1 ARM, what does 'MTA' stand for?
In the context of a 10/1 ARM, what does 'MTA' stand for?
- Monthly Transformed Adjustment
- Mortgage Term Adjustment
- Monthly Treasury Average (correct)
- Mortgage Tracker Analysis
What is calculated to obtain the Fully Indexed Rate in the example provided?
What is calculated to obtain the Fully Indexed Rate in the example provided?
- Index + Margin (correct)
- Margin + Annual Adjustment Cap
- Index + Discount
- Initial interest rate cap + Subsequent adjustment rate cap
What is the Starter/Teaser Rate formula in the context of a 10/1 ARM?
What is the Starter/Teaser Rate formula in the context of a 10/1 ARM?
In the formula for calculating Maximum 11th Year Rate, what is added to the Starter Rate?
In the formula for calculating Maximum 11th Year Rate, what is added to the Starter Rate?
What does 'FIAR' stand for as mentioned in the text?
What does 'FIAR' stand for as mentioned in the text?
Based on the text, how is the 'New FIAR' calculated?
Based on the text, how is the 'New FIAR' calculated?
What does the 'Lifetime Adjustment Cap' represent in a 10/1 ARM?
What does the 'Lifetime Adjustment Cap' represent in a 10/1 ARM?
'A.Calculate the Fully Indexed Rate: Index + Margin 1.375 2.75 Fully Indexed Rate 4.125%' - What is the Fully Indexed Rate in this calculation?
'A.Calculate the Fully Indexed Rate: Index + Margin 1.375 2.75 Fully Indexed Rate 4.125%' - What is the Fully Indexed Rate in this calculation?
'Example Of A 10/1 ARM With 2/6 Caps Index 1 Year MTA : Discount: Margin: 1.375% 1.00% 2.75% - Calculate Maximum 11th Year Rate: Starter Rate +Annual Adj.Cap 3.125% 2.00% Max 1st Year Rate 5.125% (New Current*) Index 2.25%* +Margin 2.75% *New FIAR 5.00%' - What does 'Max 1st Year Rate' refer to in this calculation?
'Example Of A 10/1 ARM With 2/6 Caps Index 1 Year MTA : Discount: Margin: 1.375% 1.00% 2.75% - Calculate Maximum 11th Year Rate: Starter Rate +Annual Adj.Cap 3.125% 2.00% Max 1st Year Rate 5.125% (New Current*) Index 2.25%* +Margin 2.75% *New FIAR 5.00%' - What does 'Max 1st Year Rate' refer to in this calculation?
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