Which of the following statements is true?
A) All fixed-rate mortgages have interest rate caps.
B) All adjustable-rate-mortgages have interest rate caps.
C) An interest rate cap on a mortgage reduces the lender's interest rate risk exposure.
D) Usually, an annual interest rate cap on a mortgage is 5%, and a lifetime cap is 1- 2%.
E) Both a and b are true.
Correct Answer:
Verified
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