Finance
An Indiana lender offering an adjustable-rate mortgage (ARM) must disclose the index, margin, and:
AThe borrower's credit score
BThe interest rate caps (periodic and lifetime caps) limiting how much the rate can change✓ Correct
CThe appraisal value of the property
DThe names of competing lenders
Explanation
For ARMs, lenders must disclose the index used, the margin added to the index to set the rate, and the caps — both periodic (how much the rate can change per adjustment period) and lifetime (the maximum total rate change over the loan life).
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