this is the question and the suggestion he gave us....
A customer comes in to see you. They want to compare 2 loans, both for $150,000. one is a 1 year ARM starting at 4.5% with a 2% annual cap, and a 6% lifetime cap. The other is a 30 year fixed rate at 7.5% they feel that the market will rise, and want you to calculate what they have paid on each loan for the first 5 years, if the ARM increases its maxium each year.
you will need a financial calculator for this one or try one of the online websites that have loan calculators such as www.bankrate.com
our teacher said to get some help form a our banks lending department and i have tried 4 different banks in the area and none of them were willing to help :(
2006-10-15
13:28:00
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1 answers
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asked by
Push_mb20girl
4