Finance
What is the purpose of an adjustable-rate mortgage (ARM) disclosure in Nevada?
ATo guarantee the interest rate will not change
BTo inform borrowers how the interest rate and payment may change over time✓ Correct
CTo establish the property's appraised value
DTo waive the borrower's right to a fixed-rate loan
Explanation
Federal and Nevada law requires lenders to provide ARM disclosures explaining how the interest rate is determined, the frequency of adjustments, caps on changes, and worst-case payment scenarios so borrowers understand their risk.
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