A mortgage with interest rate and periodic payments that vary with market interest rates over the real estate loan's life.
A) Adjustable-rate mortgage
B) Flexible mortgage
C) Fixed-rate mortgage
D) Subprime mortgage

Question

Quizplus · Accepted Answer

An adjustable-rate mortgage (ARM) is a type of mortgage loan where the interest rate and periodic payments can fluctuate based on current market interest rates. This means that the borrower's monthly payments can increase or decrease over the life of the loan, depending on how interest rates change.

A Mortgage with Interest Rate and Periodic Payments That Vary