Finance
A 'teaser rate' on an ARM loan refers to:
AThe rate after the first adjustment
BAn artificially low initial interest rate offered for a limited period to attract borrowers✓ Correct
CThe maximum lifetime rate cap
DA penalty rate charged for late payments
Explanation
A teaser rate is an initial discounted interest rate on an ARM loan that is below the fully indexed rate, lasting for a limited introductory period before adjusting to market rates.
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