What is the principal portion of the 188th month’s payment for a $450,000 15/15 Hybrid ARM Mortgage (first 15 years are fixed rate and second 15 years are adjustable – all payments are fully amortizing) with the following parameters:
Fixed Interest Rate: 5.5%
1st Year of ARM portion - LIBOR Index: 1.85%
2nd Year of ARM portion - LIBOR Increase: 1.45%
Margin: 275 basis points
Annual Periodic Cap: 2%
Lifetime Cap: 5%