Finance
An adjustable-rate mortgage (ARM) in Missouri typically has a lower initial rate because:
AThe government subsidizes it
BThe rate is fixed for the entire loan term
CThe borrower assumes some interest rate risk after the initial period✓ Correct
DIt does not require a credit check
Explanation
ARMs start with a lower introductory rate, but after the initial fixed period, the rate adjusts based on a market index. Borrowers accept interest rate risk in exchange for the lower starting rate.
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