Finance
A Maine homebuyer chooses a 7/1 ARM (adjustable rate mortgage). This means:
AThe rate adjusts every 7 months
BThe rate is fixed for 7 years, then adjusts annually✓ Correct
CThere are 7 rate adjustment caps over the life of the loan
DThe loan is fully paid off in 7 years
Explanation
A 7/1 ARM has a fixed interest rate for the first 7 years, then adjusts once per year after that, based on a specified index plus a margin, subject to periodic and lifetime rate caps.
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