60.1K
Verified Solution
Link Copied!
1) If one of the terms of an ARM read, interest is capped at 1%/2%/6%, what would that mean?
(A) The borrower can choose the cap he wants by simply circling the appropriate choice
(B) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change with a maximum interest rate of 6%
(C) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change and a 6% floor rate
(D) The interest rate has a 2% subsequent maximum rate change after the initial rate change and a 5% lifetime cap rate
Answer & Explanation
Solved by verified expert
