Finance
An interest rate 'cap' on an adjustable-rate mortgage (ARM) in Nebraska limits:
AThe lender's profit margin
BHow much the interest rate can increase per adjustment period and over the life of the loan✓ Correct
CThe maximum loan amount
DThe minimum down payment required
Explanation
ARM rate caps protect borrowers by limiting: (1) how much the rate can change at each adjustment, (2) how much it can change in total over the life of the loan, and (3) sometimes the initial adjustment.
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