An adjustable rate mortgage allows for fluctuating interest rates based on economic conditions, offering potential changes to the borrower's repayment amount over time. Therefore, option B is correct.
An adjustable rate mortgage (ARM) is a type of home loan where the interest rate is not fixed and can vary over the life of the loan. The interest rate adjustments are typically tied to a specific financial index, such as the prime rate or the Treasury rate.
As a result, the borrower's monthly payments can change periodically, either increasing or decreasing, based on the movement of the index.
This feature makes ARMs different from fixed-rate mortgages, offering potential advantages such as initial lower rates but also introducing uncertainty and the possibility of higher payments in the future.
Therefore, option B is correct.
Learn more about ARM here:
#SPJ6
Most probably, your complete question is this:
What is true of an adjustable rate mortgage?
A. the borrower can adjust monthly payment depending on his budget
B. the interest rate may change depending on the condition of the economy
C. the lender can adjust the monthly payments dates whenever he wants to
Answer:
A department of an institution, particularly the government, where workers deal with a certain type of administrative work is known as an office.
true, i took the test
b.is a monopoly.
c.has monopoly power.
d.is a natural monopoly.
Answer:
c.has monopoly power.
Explanation:
Panamint Springs has monopoly power, this means that being the last gas station on the root, they have control over price. Most vehicles will have no choice but to buy gas at whatever price the seller fixes.