The Main Problem with an Adjustable Rate Mortgage (ARM)is That

question 85

Multiple Choice

The main problem with an adjustable rate mortgage (ARM) is that:

• A)you have to pay the same interest rate as in a fixed-rate mortgage plus 10 percent.
• B)it makes planning and budgeting difficult because you don't know when the rate will change.
• C)when the rate adjusts upward your house payment goes down.
• D)when the prime rate falls,so does your mortgage interest rate.

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Definitions:

Yellow Wavelengths

The segment of the light spectrum that is perceived by the human eye as yellow, typically around 570–590 nm.

Absorbs

The process by which one substance takes in or assimilates another, such as a sponge absorbing water.

Reflects

Involves thinking deeply or carefully about something, often leading to insights or a change in perspective.

Presbyopia

A natural age-related loss of the eyes' ability to focus on close objects, due to the hardening of the lens inside the eye.