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Which of the Following Is Not True Concerning Adjustable-Rate Mortgages

Question 119

Multiple Choice

Which of the following is not true concerning adjustable-rate mortgages (ARMs) ?


A) There is usually a limit on how much a rate may increase per year.
B) There is usually no limit on how much a rate may increase per year.
C) There is usually a limit on how much a rate may increase over the life of the loan.
D) The maximum increase over the life of the loan is usually 5%.

Correct Answer:

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