As Compared to Fixed-Rate Mortgages,ARMs Result in Which of the Following

question 36

Multiple Choice

As compared to fixed-rate mortgages,ARMs result in which of the following for the lender?
I. Higher interest rate risk
II. Lower default risk
III. Greater prepayment penalty fees

• A)I,II,and III
• B)I and II only
• C)II and III only
• D)I and III only
• E)None of these choices are correct.

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