If You Decide to Buy a House with an Adjustable-Rate

question 110

Multiple Choice

If you decide to buy a house with an adjustable-rate mortgage (ARM) , you are:

• A) exposing yourself to inflation risk.
• B) reducing your inflation risk.
• C) passing inflation risk to the lender.
• D) taking on some of the lender's inflation risk.
• E) increasing your mortgage payment.

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