Finance
An Iowa ARM (adjustable-rate mortgage) loan is characterized by:
AA fixed interest rate for the entire loan term
BAn interest rate that adjusts periodically based on a specified index✓ Correct
CZero down payment requirement
DGovernment guarantee against all default
Explanation
An adjustable-rate mortgage (ARM) carries an interest rate that changes at specified intervals based on a benchmark index (such as SOFR), meaning monthly payments may increase or decrease over the life of the loan.
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