The Main Problem with an Adjustable Rate Mortgage (ARM)is That

question 85

Multiple Choice

The main problem with an adjustable rate mortgage (ARM) is that:

• A)you have to pay the same interest rate as in a fixed-rate mortgage plus 10 percent.
• B)it makes planning and budgeting difficult because you don't know when the rate will change.
• C)when the rate adjusts upward your house payment goes down.
• D)when the prime rate falls,so does your mortgage interest rate.