Mortgage Loans Model: Calculate loan payments with 4% annual interest rate (you need to do this first and add to other loan payments to check the restrictions below). Remember you use Capital Recovery (CR) to calculate loan payments.

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?