Finance
A buyer obtains a mortgage loan where the interest rate can change periodically based on a market index. This is known as a:
AFixed-rate mortgage
BBalloon mortgage
CAdjustable-rate mortgage (ARM)✓ Correct
DWraparound mortgage
Explanation
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on changes in a specified index, which can cause the monthly payment to increase or decrease.
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