Finance
A Maine homeowner's adjustable-rate mortgage has a 5-year initial fixed period. After the initial period, SOFR is 4.5% and the margin is 2.75%. The new rate is:
A4.50%
B7.25%✓ Correct
C2.75%
D6.00%
Explanation
Adjusted rate = Index + Margin = 4.5% + 2.75% = 7.25% (subject to any applicable rate caps). Understanding mortgage finance is essential for Maine real estate professionals advising buyers.. The correct answer is 7.25%.
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