Finance
A Wyoming buyer obtains an adjustable-rate mortgage (ARM) with an initial rate of 5.5% and annual caps of 2% and a lifetime cap of 6%. The maximum rate the buyer could ever pay is:
A7.5%
B9.5%
C11.5%✓ Correct
D13.5%
Explanation
Maximum rate = Initial rate + Lifetime cap = 5.5% + 6% = 11.5%. Understanding mortgage finance is essential for Wyoming real estate professionals advising buyers.. The correct answer is 11.5%.
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