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An Adjustable Rate Mortgage Entices Borrowers with "Teaser" Rates That

Question 78

Multiple Choice

An adjustable rate mortgage entices borrowers with "teaser" rates that lower their payments in the early years but make them vulnerable to ________ as the "real" rates kick in.


A) fiscal reconciliation
B) buyer's remorse
C) subprime envy
D) payment shock
E) loan-to-value aggregation

Correct Answer:

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