A mortgage loan in which the interest rate charged fluctuates with the level of current interest rates is called a(n)

Question

Quizplus · Accepted Answer

ARM stands for Adjustable Rate Mortgage, which is a type of mortgage loan in which the interest rate charged fluctuates with the level of current interest rates. This means that the borrower's mortgage payment could potentially change over time, as interest rates go up or down. The other choices are not commonly used terms in the mortgage industry.

A Mortgage Loan in Which the Interest Rate Charged Fluctuates