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Kathy and Jake are purchasing a house and are financing $465,000. The mortgage is a 20-year 5/1 ARM at 3.5% with a 2/7 cap structure. What will the remaining balance be after the first 5 years? a $396,
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Kathy and Jake are purchasing a house and are financing $465,000. The mortgage is a 20-year

5/1 ARM at 3.5% with a 2/7 cap structure. What will the remaining balance be after the first 5 years?

a $396,038.65
b$427,354.28
c $407,836.29
d $377,238.57

User Gorets
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1 Answer

3 votes

Answer:

D

Step-by-step explanation:

The remaining balance on a 20-year 5/1 ARM at 3.5% interest with a 2/7 cap structure after 5 years will be $377,238.57.

Pro life tip: Do NOT finance your home with an ARM mortgage.

Good luck in your studies!

User Dloeda
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