Which of the following statements about adjustable-rate mortgages is TRUE?

Question

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Adjustable-rate mortgages usually have a lower interest rate than fixed-rate mortgages during the first year, which can be attractive to buyers who plan to sell or refinance before the interest rate adjusts. Option A is incorrect because the defining feature of an adjustable-rate mortgage is that the interest rate can change over time. Option B is incorrect because the attractiveness of an adjustable-rate mortgage depends on a buyer's individual financial situation and goals, not just their income level. Option D is incorrect because fixed mortgage rates and adjustable mortgage rates can move independently of each other, and the attractiveness of an adjustable-rate mortgage depends on a buyer's individual financial situation and goals.

Which of the Following Statements About Adjustable-Rate Mortgages Is TRUE