Answered

Which statement is true of an adjustable rate mortgage?

APayments will adjust each year based on the amount of equity you have in your home
BThe interest rate will stay fixed for a period of time, then adjust either up or down based on an index
CThe interest rate can only change twice during the course of the loan
DAn adjustable rate mortgage always includes a balloon payment at the end of the 7th year

Verified Answer :

taskmasters

The answer is B. Adjustable rate mortgage is a mortgage loan where the interest rate stays for for a certain period of time then it changes either up or down based on an index. It is also called variable-rate mortgage or tracker mortgage. This type of mortgage loan permits a debtor to have a lower initial payment if and only if they agree to assume the risk of the changes in the interest rate.

Answer:

b

Explanation:

Related Questions