Question

Which type of loan features lower interest rates for a short duration then changes with current rate averages?

(1 point)
Responses

point-based mortgage

point-based mortgage

fixed rate mortgage

fixed rate mortgage

adjustable rate mortgage

adjustable rate mortgage

balloon mortgage

Answer 1

The type of loan that features lower interest rates for a short duration and then changes with current rate averages is an **adjustable rate mortgage (ARM)**.