Question

Linda just got approved on an ARM mortgage. What is true?

O Her taxes will be reduced.
O She has a secured loan.
O Her interest will be fixed.
O She cannot make a down payment.

Answer 1

`\fbox {She has a secured loan.}`

Step-by-step explanation:

We know from basics that by a mortgage, we understand that we put our asset down as a collateral so we can take a loan and this asset will be under the lender's control until repayment.

An ARM mortgage means that the interest rate can be gradually changed based on performance benchmarks, such as a change in it every 6 months.

Hence, by this, we can understand that the loan is secure.