Finance
A mortgage that carries a fixed interest rate for the first several years, then adjusts periodically, is called a(n):
AFully amortized loan
BAdjustable-rate mortgage (ARM)✓ Correct
CBalloon mortgage
DReverse mortgage
Explanation
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on an index. Many ARMs feature an initial fixed period (e.g., 5 or 7 years) before the rate begins adjusting.
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