General Mortgage KnowledgeQuestion 176 of 400
A convertible ARM gives the borrower the option to:
a.Skip payments
b.Remove the property tax escrow
c.Increase the loan amount
d.Convert to a fixed rate during a specified window, often for a fee
Explanation
A convertible ARM includes a conversion feature allowing the borrower to switch to a fixed rate during a set period, usually for a fee, without a full refinance. It does not permit skipping payments, removing escrow, or increasing the loan.
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