Finance
An adjustable-rate mortgage (ARM) in Nebraska features:
AA fixed interest rate for the entire loan term
BAn interest rate that adjusts periodically based on an index, affecting the monthly payment✓ Correct
CPayments that decrease over the life of the loan
DNo index — the lender sets the rate each month
Explanation
ARMs have an initial fixed-rate period followed by rate adjustments at specified intervals based on a financial index (e.g., SOFR). Caps limit how much the rate can change per adjustment and over the life of the loan.
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