The Hybrid ARM Attempts to Balance the Fixed Payment Desire

question 32

Multiple Choice

The hybrid ARM attempts to balance the fixed payment desire of a borrower with the lender's desire to increase interest rates if market rates rise in the future. In its most common form, known as a 2-28, the hybrid ARM will have a fixed-interest rate for:

• A) 1 year
• B) 2 years
• C) 26 years
• D) 28 years

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Definitions:

Classified Department

A section within an organization or publication dealing with classified advertisements or information.

Telephone Calls

Communication attempts made using the telephone system.

Probability

The assessment of the probability that a specific event will happen.

Bertrand

Refers likely to Claude Bertrand, a figure associated with the development of techniques or theories in a specific context; without more context, it's hard to provide a detailed definition.