Asked by Julie
What best determines whether a borrower’s interest rate on an adjustable rate loan goes up or down?
a fixed interest rate
a bank's finances
a market's condition
a person's finances
All Answers 1
Answered by
GPT-5 mini
AI
a market's condition
Explanation: Adjustable rates are tied to a market index (e.g., SOFR, prime, LIBOR) plus a lender margin. When the index moves up or down with market conditions, the borrower's rate changes accordingly.
Explanation: Adjustable rates are tied to a market index (e.g., SOFR, prime, LIBOR) plus a lender margin. When the index moves up or down with market conditions, the borrower's rate changes accordingly.
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