Finance
The 'index' used in an adjustable-rate mortgage in Mississippi is typically:
AA rate set by MREC
BA published financial index such as SOFR, the Prime Rate, or a Treasury index to which the margin is added✓ Correct
CThe national average mortgage rate
DThe Mississippi state unemployment rate
Explanation
ARM interest rates are calculated by adding a fixed margin to a variable index (such as SOFR—Secured Overnight Financing Rate, a Treasury index, or the Prime Rate). When the index rises or falls, the ARM rate adjusts accordingly.
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