Finance
In Louisiana, which type of mortgage loan typically offers the lowest initial interest rate?
A30-year fixed rate
B15-year fixed rate
C5/1 ARM✓ Correct
DFHA 30-year fixed
Explanation
Adjustable rate mortgages (ARMs) typically offer lower initial interest rates than fixed-rate loans because the lender bears less long-term interest rate risk. A 5/1 ARM's initial rate is typically lower than any fixed-rate product.
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