Finance
In South Carolina, which type of mortgage loan has an interest rate that can change periodically based on a market index?
AFixed-rate mortgage
BAdjustable-rate mortgage (ARM)✓ Correct
CBalloon mortgage
DWraparound mortgage
Explanation
An adjustable-rate mortgage (ARM) has an interest rate tied to a market index (such as SOFR or Treasury rates). The rate adjusts periodically after an initial fixed period, which can cause monthly payments to change.
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