Finance
A Connecticut lender offers a '5/1 ARM' mortgage. This means the interest rate is fixed for how long before annual adjustments begin?
A1 year
B5 years✓ Correct
C5 months
D10 years
Explanation
A 5/1 ARM (Adjustable Rate Mortgage) has a fixed interest rate for the first 5 years, then adjusts annually (every 1 year) based on an index plus a margin, subject to the cap structure.
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