Finance
An adjustable-rate mortgage (ARM) in Wisconsin has a 2/6 cap. This means:
AThe rate can adjust by no more than 2% per adjustment and 6% over the loan's life✓ Correct
BThe rate is fixed for 2 years then adjusts every 6 months
CThe maximum payment is 2% of the loan or $6,000 per year
DThe lender can change the rate twice over 6 years
Explanation
ARM caps limit rate changes. A 2/6 cap means the rate can increase by no more than 2% per adjustment period and no more than 6% total over the life of the loan from the initial rate.
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