Finance
A Michigan adjustable-rate mortgage with an initial fixed period of 5 years followed by annual adjustments is called a:
A5/1 ARM✓ Correct
B5-year fixed
CBalloon mortgage
DStep-rate mortgage
Explanation
A 5/1 ARM has an initial 5-year fixed rate period, after which the rate adjusts annually. The '5' is the fixed period and '1' is the adjustment frequency.
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