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

question 28

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 the above

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