Finance
A NC adjustable-rate mortgage has an initial 'teaser rate' period. After the fixed period ends, the rate adjusts based on:
AThe lender's discretion
BA benchmark index (such as SOFR) plus a margin✓ Correct
CThe property's current appraised value
DThe borrower's current credit score
Explanation
ARM rates adjust based on a market index (such as SOFR, formerly LIBOR) plus the lender's margin. The index tracks market interest rate movements, while the margin is fixed.
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