My lender has presented me with the option to pursue a 2/6, 7/1 ARM that has an amortization period of 30 Years, an initial rate of 2.875%, a 3.0% margin and an index that is based on the one-year U.S. Treasury bill. Which statement below does not apply to this loan product?

a.

The most that the note can adjust in any one year is 2% per year

b.

The payment on this note is fixed for the first seven years and then will adjust annually

c.

The teaser rate on this note is 3%

d.

The highest my interest rate can ever be on this note is 8.875%

e.

If the one-year treasury rate is at 1% when my note adjusts, my new rate will be 4%