What would the monthly payments be on a $65,000 loan if the mortgage were set up as:   A 15-year, 8 percent fixed-rate loan. Round the answer to the nearest cent. $   per month A 30-year ARM in which the lender adds a margin of 2.5 to the index rate, which now stands at 5.5 percent. Find the monthly mortgage payments for the first year only. Round the answer to the nearest cent. $   per month

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.