Finance
An adjustable-rate mortgage (ARM) typically starts with a lower interest rate that can change based on a:
AGREC-approved schedule
BMarket index plus a margin✓ Correct
CFixed federal rate
DHUD guideline
Explanation
ARM interest rates adjust based on a published market index (such as SOFR or the 1-year Treasury) plus a lender's margin, which together determine the new interest rate at each adjustment period.
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