Finance
An adjustable-rate mortgage (ARM) typically features:
AA fixed interest rate for the life of the loan
BAn interest rate that adjusts periodically based on a market index✓ Correct
CInterest-only payments for 30 years
DA balloon payment at the end of each year
Explanation
An ARM has an interest rate that adjusts periodically (e.g., annually) based on a market index such as the SOFR or Treasury rate, plus a margin. ARMs often have an initial fixed-rate period before adjustments begin.
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