Finance
Which loan type is best suited for a borrower who expects to sell within 5 years?
A30-year fixed-rate mortgage
B5/1 Adjustable Rate Mortgage (ARM)✓ Correct
CFHA loan
DBalloon mortgage
Explanation
A 5/1 ARM offers a fixed rate for the first 5 years, then adjusts annually. For borrowers who plan to sell before the adjustment period, an ARM typically offers lower initial rates than a 30-year fixed mortgage.
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