Question

The interest rate on an ARM may be adjusted

A) once a year.
B) every three years.
C) every five years.
D) Any of the above depending on the terms of the loan.

Answer 1

An adjustable-rate mortgage (ARM) is a type of loan that a borrower uses to purchase a home. The interest rate on an ARM can be adjusted at different intervals depending on the terms of the loan.

Step-by-step explanation:

An adjustable-rate mortgage (ARM) is a type of loan that a borrower uses to purchase a home. With an ARM, the interest rate varies with market interest rates. The interest rate on an ARM may be adjusted once a year, every three years, every five years, or at any other interval depending on the terms of the loan.