Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. If one of the terms of an ARM read, interest is capped at 1%/2%/6%, what would that mean? (A) The borrower can choose the

image text in transcribed

6. If one of the terms of an ARM read, interest is capped at 1%/2%/6%, what would that mean? (A) The borrower can choose the cap he wants by simply circling the appropriate choice (B) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change with a maximum interest rate of 6% (C) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change and a 6% floor rate (D) The interest rate has a 2% subsequent maximum rate change after the initial rate change and a 5% lifetime cap rate 6. If one of the terms of an ARM read, interest is capped at 1%/2%/6%, what would that mean? (A) The borrower can choose the cap he wants by simply circling the appropriate choice (B) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change with a maximum interest rate of 6% (C) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change and a 6% floor rate (D) The interest rate has a 2% subsequent maximum rate change after the initial rate change and a 5% lifetime cap rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions