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A Home Buyer Is Presented with Two Options for Financing

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A home buyer is presented with two options for financing the purchase of a home: a 20 year fixed rate mortgage or a 20 year adjustable-rate mortgage, where the rate adjusts once a year. Which mortgage would you expect to start at the lowest interest rate and why?


Definitions:

Nursing Mothers

Women who are breastfeeding their infants, providing them with nutrients and antibodies through breast milk.

Contraceptive Method

A means or technique used to prevent pregnancy as a result of sexual intercourse.

Sterilization

A medical procedure that permanently prevents reproduction.

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