Finance

In South Carolina, which type of mortgage has the interest rate tied to the prime rate or Treasury index?

AFixed-rate mortgage
BVariable-rate (adjustable-rate) mortgage✓ Correct
CBalloon mortgage
DInterest-only mortgage

Explanation

An adjustable-rate (variable-rate) mortgage has an interest rate that adjusts periodically based on a market index such as the prime rate, SOFR, or Treasury index.

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