Question
Which of the following mortgages has the smallest interest rate risk? a. A fixed rate, fully amortizing, constant amortization mortgage (CAM) b. An adjustable rate
Which of the following mortgages has the smallest interest rate risk?
a. A fixed rate, fully amortizing, constant amortization mortgage (CAM)
b. An adjustable rate mortgage (ARM) with annual interest rate revisions
c. A fixed rate, constant payment mortgage with a 30-year annual amortization schedule
d. A fixed rate, interest-only mortgage
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
