(Solved): (Hybrid ARM) Suppose you take a 3/1 interest-only ARM for $100,000, monthly payments, 30-year term. ...

(Hybrid ARM) Suppose you take a 3/1 interest-only ARM for $$\$100,000$$, monthly payments, 30-year term. The initial contract rate is $$4.00\%$$ (fixed for the first 3 years) and the contract rate for year 4 is $$6.5\%$$. The lender charges 2 discount points. What is the monthly payment for the interest-only period? 444.44 583.24 572.89 333.33