Adjustable rate mortgages (ARMs)
A) were first introduced in the 1960s
B) offer a variable interest rate that is tied to another interest rate such as Treasury securities
C) usually have higher rates and higher closing costs than fixed rate mortgages
D) have no caps on interest that can be charged over the life of the mortgage

Question

Quizplus · Accepted Answer

Adjustable rate mortgages (ARMs) offer a variable interest rate that is typically tied to an index such as Treasury securities, which means the rate can change over time based on the performance of the index.

Adjustable Rate Mortgages (ARMs)