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Which of the Following Statements Is True of Adjustable Rate

Question 82

Multiple Choice

Which of the following statements is true of adjustable rate mortgages?


A) The interest rate changes on ARMs are limited per year and per lifetime.
B) They cannot be converted to fixed-rate loans.
C) They generally carry higher initial interest rates than conventional mortgages.
D) The interest changes are the same for each year of the loan.

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