Question
There is risk involved, as HELOCs are tied to the prime rate and therefore, rates can continue to rise as the underlying index rate rises.
There is risk involved, as HELOCs are tied to the prime rate and therefore, rates can continue to rise as the underlying index rate rises. This is an example of a fixed rate loan (the rate is FIXED to an underlying index).
Group of answer choices
True
False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
