Finance
A Mississippi borrower's adjustable-rate mortgage has a 2/6 cap structure. This means the rate can increase no more than:
A2% at each adjustment and 6% over the life of the loan✓ Correct
B6% at each adjustment and 2% over the life of the loan
C2% per year for 6 years
D6% at the first adjustment and 2% at subsequent adjustments
Explanation
A 2/6 cap structure means the interest rate can increase no more than 2% at any single adjustment period, and no more than 6% over the life of the loan above the initial rate.
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