Finance
In New York, which of the following best describes an 'ARM' (adjustable-rate mortgage)?
AA mortgage with a fixed interest rate for the entire loan term
BA mortgage whose interest rate is fixed initially and then adjusts periodically based on a specified index✓ Correct
CA mortgage that requires a balloon payment at the end of the term
DA government-backed mortgage for first-time buyers
Explanation
An adjustable-rate mortgage (ARM) has an interest rate that is fixed for an initial period (e.g.
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