Finance
An adjustable-rate mortgage (ARM) in North Carolina typically has an initial rate that is:
AHigher than a fixed-rate mortgage
BThe same as a fixed-rate mortgage
CLower than a fixed-rate mortgage✓ Correct
DSet by the NCREC
Explanation
ARMs typically offer a lower initial interest rate compared to fixed-rate mortgages, making them attractive for buyers who plan to move or refinance before the rate adjusts.
Related North Carolina Finance Questions
- Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers?
- A 'balloon mortgage' in NC is characterized by:
- The NC Homeowner and Homebuyer Protection Act provides protections for distressed homeowners from:
- The secondary mortgage market institution 'Fannie Mae' (Federal National Mortgage Association) primarily:
- NC's Predatory Lending Law (NC General Statutes Chapter 24) provides additional protections beyond federal law for:
- A NC lender's 'origination fee' on a mortgage loan represents:
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