This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: You currently have a 5 year adjustable variable rate mortgage which is 4 years into the adjustment ... (Read 76 times)

jake

  • Hero Member
  • *****
  • Posts: 538
on: Apr 14, 2019

You currently have a 5 year adjustable variable rate mortgage which is 4 years into the adjustment period. The current interest rate is 3.5% per annum, and the rate is indexed to the 10 year Treasury note which is currently yielding 2.15%. Most financial forecasters are anticipating rate increases over the 2016-2017 period, but there is no consensus on the total amount of the increases. Given the interest rate environment, what would be the best course of action for your mortgage?


◦ Double up on payments and pay it off in half of the term.
◦ Refinance at the conventional 30 year fixed rate currently offered at 3.75%.
◦ Stick with your existing mortgage since it is currently 3.5% and below the offered fixed rate.
◦ Refinance into a 1 year ARM so that when rates decrease you will be in a better position.
Personal Finance ¦ Madura ¦ 6th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jake on Apr 14, 2019

jaykayy05

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Apr 14, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly


jake

  • Hero Member
  • *****
  • Posts: 538
Reply #2 on: Apr 14, 2019
Thanks


jaykayy05

  • Sr. Member
  • ****
  • Posts: 329
Reply #3 on: Apr 14, 2019
Welcome :)


« previous next »
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Over nearly 30 years, humans removed many polar bears for a variety of reasons, from a population in Over nearly 30 years, humans removed many polar bears for a variety of reasons, from a population in
An adjustable wrench. Adjustable wrenches are sized by the overall length of the wrench, not by how ... An adjustable wrench. Adjustable wrenches are sized by the overall length of the wrench, not by how ...
A typical variable cam timing control valve. The solenoid is controlled by the engine computer and ... A typical variable cam timing control valve. The solenoid is controlled by the engine computer and ...
Factors Affecting the Environmental Lapse Rate (ELR): Heating or Cooling of the Lower Atmosphere Factors Affecting the Environmental Lapse Rate (ELR): Heating or Cooling of the Lower Atmosphere
You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ... You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ...
Earth 430 Million Years Ago Earth 430 Million Years Ago
Video: Red alga life cycle Animation

For a complete list of videos, visit our video library