You are buying a property that will carry a 1750000


You are buying a property that will carry a $1,750,000 mortgage. Your loan is interest only for 5 years but the interest rate can reset every year. The interest rate has a cap of 0.75% per year. The starting rate is 4.00%. At the end of Year 1, the loan resets with an actual rate is 5.50%. End of Year 2, the actual loan rate climbs to 7.0%. The rate remains there. In Year 6, the loan resets to a fully amortized loan with 25 years to maturity at the current rate plus 0.25%. Put together a loan schedule that shows the annual payments and balance at the end of each year. What is the fully amortized payment beginning in Year 6?

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Financial Management: You are buying a property that will carry a 1750000
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