adjustable-rate mortgage help?
I’m having trouble understanding what the calculation for this is & my textbook is kinda confusing, can someone explain how I would calculate this please?
Shawn bought a home with an adjustable-rate mortgage. The margin on the loan is 2.7%, and the rate cap is 7.2% over the life of the loan. If the current index rate is 4.3%, what is the initial interest rate of the ARM?