Finance
What is 'index' as used in an adjustable-rate mortgage in Rhode Island?
AThe credit score required for mortgage approval
BA published financial benchmark (such as SOFR) used to calculate the interest rate on an ARM✓ Correct
CA list of approved lenders
DThe property's assessed value index
Explanation
In an ARM, the interest rate is tied to a published financial index (historically LIBOR, now often SOFR or other benchmarks). The rate adjusts based on changes in the index plus a set margin.
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