What is the first monthly payment (payment at t=1) for each of the following loans? Each loan is for a property bought for $500,000 with an 80% LTV ratio. LIBOR is currently at 2.5%
A. FRM 30 year, fully amortizing, interest rate=5%
B. ARM 5/1, initial interest rate (“teaser”) is 3.5%, after reset date rate is LIBOR+50bp
C. FRM 30 year, interest rate=5% partially amortizing with balloon payment of $200,000
D. ARM, annual reset, IO, interest rate is LIBOR+80bp
E. FRM 30 year, initial interest rate is 5.5%, negative amortization with balloon payment of $500,000