They saw in the newspaper that they can get a fixed rate mortgage for 6.65% or a two-year ARM with an initial rate of 5.50%.Which is true about their mortgage choices?
A)The fixed-rate mortgage has an attractive rate but is more risky for them.
B)The ARM initial rate is lower so their PITI will be lower.
C)Due to Maria's job the ARM would be the better choice.
D)Both B and C are correct.

Question

Quizplus · Accepted Answer

The ARM's initial rate is lower than the fixed rate, which means the initial payments will be lower, making it an attractive short-term option. Maria's job situation could make the ARM more suitable if it implies potential for increased income or mobility, although specific details about Maria's job are not provided, the suggestion is that her job situation could influence the choice favorably towards an ARM.

They Saw in the Newspaper That They Can Get a Fixed