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

## Step 1<br />The problem is asking us to identify the correct statement about fixed and adjustable-rate mortgages. <br /><br />## Step 2<br />Option 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. <br /><br />## Step 3<br />Option 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.<br /><br />## Step 4<br />Option 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.<br /><br />## Step 5<br />Option 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.