Which of the Following Is Not True Concerning Adjustable-Rate Mortgages

question 63

Multiple Choice

Which of the following is not true concerning adjustable-rate mortgages (ARMs) ?

• A) There is usually a limit on how much a rate may increase per year.
• B) There is usually no limit on how much a rate may increase per year.
• C) There is usually a limit on how much a rate may increase over the life of the loan.
• D) The maximum increase over the life of the loan is usually 5%.

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Definitions:

Proximal Convoluted Tubule

The part of the renal tubule that extends from Bowman’s capsule to the loop of Henle. Compare with distal convoluted tubule.

Partially Reabsorbed

The process by which a substance, once secreted or excreted, is taken back into the body or a biological system, often referring to fluids or nutrients.

Sodium Ions

Positively charged ions of sodium, essential for conducting nerve impulses, muscle contraction, and maintaining fluid balance in the body.

Filtrate

The liquid that passes through a filter, separating it from suspended solids.