Problemas
Which of the following is true about fixed and adjustable-rate mortgages? A Adjustable-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions B The two mortgages work the same way but are called different names depending if they come from a bank or a credit union C Fixed-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions D Fixed-rate mortgages have a constant payment every month, but an interest rate that increases throughout the term of the loan
Roztwór
Yvonne
professionell · Tutor durante 6 años
4.2
(307 Votos)
Respuesta
The correct answer is A.
Explicación
## Step 1The problem is asking us to identify the correct statement about fixed and adjustable-rate mortgages. ## Step 2Option A states that adjustable-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions. This is indeed the definition of an adjustable-rate mortgage. ## Step 3Option B suggests that the two types of mortgages work the same way but are called different names depending on whether they come from a bank or a credit is not true. The two types of mortgages have different characteristics and work in different ways.## Step 4Option C suggests that fixed-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions. This is not true. A fixed-rate mortgage has a fixed interest rate for the entire term of the loan.## Step 5Option D suggests that fixed-rate mortgages have a constant payment every month, but an interest rate that increases throughout the term of the loan. This is not true. A fixed-rate mortgage has a fixed interest rate and a fixed payment every month.