(Answered) A borrower takes out a 10 yr interest only mortgage loan

Finance

A borrower takes out a 10 yr interest only mortgage loan for 1,500,000 with monthly payments. In the first two years, the loan has a teaser rate of 2% after that the rate can reset annually with 2% annual and 6% lifetime rate caps. On the first reset date, the fully indexed rate is 5%.

What would be the monthly payment in the third loan yr?

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