I'm considering buying an apartment building that has an assumable mortgage that is fixed at 5.44% until early 2015 and then switches to floating. Size of mortgage is ~$880k.
I'm considering using an interest rate swap future to lock in some kind of a fixed rate from 2015 onward but I'm not entirely sure how to model/structure this. The "flex" contracts described on this web site seem like that could work for me: http://www.erisfutures.com/eris-st
I need someone who help me model and structure this.