Part 4: mortgage markets and securitization A borrower takes…

Part 4: mortgage markets and securitization A borrower takes a $250,000 adjustable-rate mortgage (ARM) with: Initial rate: 4% (for first year) Rate after reset: 6% Remaining maturity after reset: 29 years Assuming the loan is fully amortizing and payments are recalculated after reset, what will happen to the monthly payment after the rate increases?