Finance
A Maine borrower has an adjustable-rate mortgage with a 2/6 cap structure and an initial rate of 5%. The maximum rate the loan can ever reach is:
A7%
B9%
C11%✓ Correct
D13%
Explanation
The lifetime cap of 6% means the rate can never go more than 6 percentage points above the initial rate. 5% + 6% = 11% maximum.
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