The size of each payment required to amortize an adjustable interest rate mortgage (ARM) may remain constant even though the adjustable interest rate may increase from time to time.

Question

The size of each payment required to amortize an adjustable interest rate mortgage (ARM) may remain constant even though the adjustable interest rate may increase from time to time. ​

Quizplus · Accepted Answer

The size of each payment required to amortize an adjustable interest rate mortgage (ARM) may remain constant even though the adjustable interest rate may increase from time to time because the loan is structured so that the payment amount is adjusted to ensure that the loan is paid off in full by the end of the loan term.

The Size of Each Payment Required to Amortize an Adjustable