A customer is receiving a 7/1 interest-only ARM with an initial interest-only payment of $1,200 and an interest rate of 4.5%. What is the customer’s loan amount?
The 7/1 Interest-Only ARM is a 30-year Adjustable Rate Mortgage loan that permits interest-only payments for the first 10 years, with required principal and interest monthly payments fully amortized over the remaining 20 years of the loan term, for the purchase and limited cash-out refinancing of owner-occupied single .
