Yvette has a flexible-rate mortgage that limits the amount to which her monthly payments can rise. This feature is called a(n)

Question

Quizplus · Accepted Answer

This feature is called a payment cap, which limits any increases to the monthly payment amount. A rate cap limits the amount to which the interest rate can increase, FHA and VA loans are types of government-backed mortgages, and negative amortization occurs when the monthly payments are not enough to cover the interest owed, resulting in the principal balance increasing. None of these options fit the description given in the question.

Yvette Has a Flexible-Rate Mortgage That Limits the Amount to Which