You have decided to buy a 3,250 square-feet house in Denton, close to a good public school. The average price in the area is $190 per square feet. The bank will finance 100% of the house value...

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Extracted text: You have decided to buy a 3,250 square-feet house in Denton, close to a good public school. The average price in the area is $190 per square feet. The bank will finance 100% of the house value (3,250x190). You sign a 20-year 3/1 adjustable rate mortgage (ARM), which carries a 1.5% fixed rate for the first 3 years, and then (after 3 years) is adjusted to the 1-year LIBOR + 0.75 %. Compute your monthly payments in 3 years (month 37) if the LIBOR is 3% in 3 years from now.