While Interest Rates Have Been Historically Low for the Past

question 105

Multiple Choice

While interest rates have been historically low for the past 8 years,rates are expected to begin to increase over the coming couple of years.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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Definitions:

Homozygote

An organism that has two identical alleles for a specific trait or gene.

Identical Alleles

Alleles that are the same at the same locus on both chromosomes in a pair, resulting in a uniform expression of a trait.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism, one inherited from each parent, that have corresponding gene sequences and structures.

Crossing Over

A genetic process occurring during meiosis where homologous chromosomes exchange segments of genetic material to form recombinant chromosomes, contributing to genetic diversity.