Finance
A 'teaser rate' on an adjustable-rate mortgage in Virginia is:
AThe standard fixed rate offered to creditworthy borrowers
BA temporarily low introductory interest rate that adjusts upward after an initial period✓ Correct
CThe maximum rate the loan can reach over its lifetime
DA rate offered only to veterans
Explanation
A teaser rate is an artificially low introductory rate on an ARM that attracts borrowers but adjusts to a higher rate after the initial period. Borrowers should understand the fully indexed rate they'll eventually pay.
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