You Have Taken Out a $225,000, 3/1 ARM

question 13

Multiple Choice

You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked in for 3 years and is expected to increase to 6.5% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years)

• A) $1,320.19
• B) $1,422.15
• C) $1,874.45
• D) $1959.99

---

Definitions:

Learning Principles

Encompass the fundamental concepts and strategies through which individuals acquire new knowledge, skills, attitudes, or values.

Person-centered Therapy

A counseling approach emphasizing the client's perspective, promoting self-discovery, and valuing their potential for personal growth.

Empirical Research

A way of gaining knowledge by means of direct observation or experience, employing systematic and scientifically valid methods to gather data.

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve behaviors and replace undesirable behaviors with more desirable ones.