Finance
A Utah borrower's qualifying interest rate on an ARM may be the:
ACurrent start rate only
BFully indexed rate or a qualifying rate set by the lender (often higher than the start rate)✓ Correct
CFederal funds rate
D30-year fixed rate regardless of ARM terms
Explanation
Under qualified mortgage rules, lenders must qualify ARM borrowers at the fully indexed rate (index + margin) or at a qualifying rate, not just the initial low teaser rate, to ensure they can afford future payments.
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