FinanceCâu 78 / 120
The interest rate on an adjustable-rate mortgage (ARM) is typically calculated as:
a.A fixed rate that never changes
b.The seller's asking price divided by twelve
c.The property tax rate
d.An index plus a margin
Giải thích
An ARM's interest rate equals a benchmark index plus a fixed margin set by the lender. As the index moves, the rate adjusts at set intervals, often within caps. This contrasts with a fixed-rate mortgage, whose rate stays constant for the loan's life.
Luyện miễn phí toàn bộ 120 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- The clause in a mortgage that allows the lender to demand full repayment if the borrower defaults is the:
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