A(n)________ ARM combines the aspects of fixed-rate and adjustable-rate mortgages.
A)two-step
B)convertible
C)reduction-option
D)option payment

Question

Quizplus · Accepted Answer

A two-step ARM, also known as a hybrid ARM, combines features of both fixed-rate and adjustable-rate mortgages. Initially, it offers a fixed interest rate for a specific period, after which the rate adjusts to the current market rate.

A(n)________ ARM Combines the Aspects of Fixed-Rate and Adjustable-Rate Mortgages