Finance
What is the difference between a fixed-rate and an adjustable-rate mortgage in Nevada?
AA fixed-rate mortgage has a shorter term than an ARM
BA fixed-rate mortgage maintains the same interest rate for the entire loan term; an ARM's rate can change periodically based on a market index✓ Correct
CAn ARM is always a better choice for Nevada homebuyers
DFixed-rate mortgages are only available for properties over $500,000 in Nevada
Explanation
A fixed-rate mortgage has a locked interest rate for the full term, providing payment certainty. An ARM has an initial fixed period (e.g., 5/1 ARM) followed by periodic adjustments tied to an index (SOFR, etc.). ARMs carry rate risk but often start lower than fixed rates.
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