While Interest Rates Have Been Historically Low for the Past

question 126

Multiple Choice

While interest rates have been historically low for the past 8 years, rates have started to increase and may continue to rise over the coming year. Given the interest rate environment, which type of mortgage would be best for your new home?

• A) Variable rate interest only mortgage since the payments would be the lowest
• B) A 5-year adjustable ARM
• C) A 30-year conventional fixed-rate mortgage
• D) A one-year adjustable ARM with a 6% cap

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