Finance
A Missouri ARM with a 2/6 cap means the interest rate can change by a maximum of:
A2% per adjustment, 6% lifetime✓ Correct
B6% per adjustment, 2% lifetime
C2% total over the life of the loan
D6% in the first year
Explanation
A 2/6 cap structure means the rate can increase no more than 2% per adjustment period and no more than 6% above the initial rate over the life of the loan.
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