The following is NOT characteristic of an adjustable rate mortgage
A) it has a lower initial interest rate than a fixed rate mortgage
B) it has lower risk for the borrower than do fixed rate mortgages
C) it has a limit on the amount the rate can change from period to period
D) it has a rate that is tied to an index rate
Correct Answer:
Verified
Q11: A reason not to refinance a loan
Q12: Today's mortgage market is dominated by:
A) FRMs
Q13: The tilt problem causes the real payment
Q14: The index on an adjustable rate mortgage
Q15: The following is not an alternative mortgage
Q17: The following is NOT a characteristic of
Q18: The main advantage of a Pledged Account
Q19: An ARM has the following characteristics at
Q20: The following is NOT true of a
Q21: A PLAM has the following terms: loan
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