Finance
An adjustable-rate mortgage (ARM) in Vermont is characterized by:
AA fixed interest rate for the entire loan term
BAn interest rate that can change periodically based on a market index✓ Correct
CGovernment-backed rate guarantees
DA rate that only increases, never decreases
Explanation
An ARM has an interest rate that adjusts periodically based on a benchmark index (such as SOFR), which means monthly payments can increase or decrease over the life of the loan.
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