Question

For most ARMs, interest rate change disclosures must be provided no more than _____ days prior to the interest rate change.

A) 30 days
B) 45 days
C) 60 days
D) 90 days

Answer 1

For most ARMs, interest rate change disclosures must be provided no more than 60 days prior to the interest rate change.

Step-by-step explanation:

For most ARMs (Adjustable Rate Mortgages), interest rate change disclosures must be provided no more than 60 days prior to the interest rate change.

"ARMs" typically refers to "Adjustable Rate Mortgages." An Adjustable Rate Mortgage is a type of home loan in which the interest rate can change periodically over the life of the loan. The interest rate is often tied to an underlying financial index, such as the U.S. Treasury Bill rate or the London Interbank Offered Rate (LIBOR). The interest rate may adjust at specified intervals, and the adjustments are typically subject to caps and limits to protect borrowers from significant rate increases.