Finance
An Indiana adjustable rate mortgage (ARM) disclosure must include a 'payment cap' that limits:
AThe number of payments made
BThe maximum increase in the monthly payment per adjustment period✓ Correct
CThe total amount of interest paid over the loan term
DThe minimum payment required
Explanation
Payment caps on ARMs limit how much the monthly payment can increase in a given adjustment period, protecting borrowers from sudden, large payment increases even if the interest rate adjusts significantly.
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