Jen has a 15 year fixed rate mortgage with a 5% rate and $100,000 loan. David has a 15 year ARM on a $100,000 loan and an initial rate of 5%. After 3 years David's rate adjusts to 4% and remains below 5% for the remainder of the loan.

During the final year of the mortgage, how will the monthly mortgage payments compare?

• A.

  Jen's will be lower

• B.

  David's will be lower

• C.

  They will be the same

• D.

  There is not enough information to determine the answer