Which of these describes the life of a 4/1 ARM loan? The initial rate stays consistent for the first quarter of the loan's term and then adjusts every 4 years for the remainder of the term. The initial rate is in place for 4 years, then adjusts every year for the remainder of the term. The initial rate is in place for 1 year, and then adjusts every 4 years for the remainder of the term. The rate adjusts every 4 years by 1%, either up or down depending on the index rate.
Which of these describes the life of a 4/1 ARM loan? The initial rate stays consistent for the first quarter of the loan's term and then adjusts every 4 years for the remainder of the term. The initial rate is in place for 4 years, then adjusts every year for the remainder of the term. The initial rate is in place for 1 year, and then adjusts every 4 years for the remainder of the term. The rate adjusts every 4 years by 1%, either up or down depending on the index rate.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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