The Purpose of a Rate Cap with an Adjustable Rate

question 48

Multiple Choice

The purpose of a rate cap with an adjustable rate mortgage is to:

• A)minimize interest costs.
• B)prevent changes in the amount of the monthly payment.
• C)increase negative amortization.
• D)restrict the amount by which the interest rate can increase or decrease during the ARM term.
• E)lower the escrow account.

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Definitions:

Sonograms

Visual representations of the intensity of sound frequencies over time, often used in medical imaging and bird song analysis.

Scientific Process

A methodical series of steps taken to acquire new knowledge through observations, experiments, and analysis.

Rudimentary Sub-Song

A basic or undeveloped form of vocalization performed by young birds as a precursor to full song learning.

Deafened Male

A male individual whose hearing has been impaired or lost, which may impact communication, mating, and survival behaviors.