Finance
The interest rate on an adjustable-rate mortgage (ARM) is tied to a:
AFixed rate set at origination
BFinancial index plus a margin✓ Correct
CPrime rate minus a discount
DConnecticut state-mandated rate
Explanation
ARM interest rates are based on a financial index (such as SOFR or the 1-year Treasury) plus a margin set by the lender. The rate adjusts periodically based on index changes.
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