Finance
A North Dakota lender offering a 5/1 ARM means:
AThe loan has a fixed rate for 5 months, then adjusts annually
BThe loan has a fixed rate for 5 years, then adjusts annually✓ Correct
CThe rate adjusts 5 times over the loan life
DThe initial payment is 5% of the loan balance annually
Explanation
A 5/1 ARM has a fixed interest rate for the first 5 years, then the rate adjusts once per year (annually) based on an index plus a margin for the remaining loan term.
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