Finance
An adjustable-rate mortgage (ARM) typically offers:
AA fixed interest rate for the life of the loan
BAn initial fixed rate that adjusts periodically based on an index✓ Correct
CInterest-only payments throughout the loan term
DA rate guaranteed not to exceed 5%
Explanation
An ARM offers an initial fixed interest rate for a specified period, after which the rate adjusts periodically (e.g., annually) based on a specified index plus a margin.
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