Finance
A Washington borrower's ARM has a 2/6 cap structure. The initial rate is 4%. The maximum rate over the life of the loan is:
A6%
B8%
C10%✓ Correct
D12%
Explanation
With a 2/6 ARM cap, the rate can increase by 2% per adjustment period and 6% over the life of the loan. Starting at 4%, the maximum lifetime rate is 4% + 6% = 10%.
Related Washington Finance Questions
- Washington's Home Equity Loan Consumer Protection Act provides borrowers with additional protections for:
- A Washington homebuyer obtains a 30-year fixed mortgage at 7% for $450,000. The monthly P&I payment factor for $1,000 at 7% for 30 years is approximately $6.65. What is the monthly P&I payment?
- In Washington, a deed of trust involves how many parties?
- A Washington homebuyer who qualifies for a USDA rural development loan must purchase a property:
- Washington borrowers using a USDA guaranteed loan benefit from:
- The Washington Housing Finance Commission (WSHFC) provides first-time homebuyer assistance programs that offer:
- A Washington buyer applies for a loan. The lender runs a credit check, verifies income, and orders an appraisal. This process is called:
- A Washington first-time homebuyer uses the WSHFC 'Home Advantage' program. This program typically requires the buyer to:
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →