Finance
In Alabama, which type of loan has an interest rate that changes periodically based on a market index?
AFixed-rate mortgage
BAdjustable-rate mortgage (ARM)✓ Correct
CBalloon mortgage
DPackage mortgage
Explanation
An adjustable-rate mortgage (ARM) has an interest rate that adjusts periodically based on a market index. The rate can go up or down, which changes the monthly payment.
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