Finance
What is the primary difference between a fixed-rate and an adjustable-rate mortgage?
AFixed-rate loans are always more expensive than ARMs
BThe interest rate on a fixed-rate loan stays constant; on an ARM it can change✓ Correct
CARMs always have lower lifetime costs
DFixed-rate loans require larger down payments
Explanation
A fixed-rate mortgage has a constant interest rate for the life of the loan, while an adjustable-rate mortgage (ARM) has an interest rate that can change periodically based on market indexes.
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