Finance
The 'teaser rate' on an adjustable-rate mortgage (ARM) in Connecticut refers to:
AThe rate that applies for the entire loan term
BA low introductory interest rate offered for an initial period before the rate adjusts✓ Correct
CThe maximum rate cap on the loan
DThe rate charged for late payments
Explanation
A teaser rate is a below-market initial interest rate offered on an ARM for a limited period to attract borrowers. After the initial period ends, the rate adjusts to a market-based rate (index + margin), which may be significantly higher.
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