The Type of Home Mortgage That Has a Variable Interest

question 13

Multiple Choice

The type of home mortgage that has a variable interest rate and thus the payment throughout the life of the loan will change is known as a(n) :

• A) Variable rate mortgage
• B) Adjustable rate mortgage
• C) 80/20 loan
• D) Interest only mortgage

---

Definitions:

Debtor

A debtor is an individual or entity that owes a debt to another party, usually a sum of money.

Attaches

The process or moment when a legal right, interest, or lien is officially joined or connected to property or assets.

Secured Interest

A legal claim or lien on assets which is established to secure payment or performance of an obligation.

Default

Failure to fulfill a legal obligation, especially failing to make a required payment or perform a contractual duty.