Asked by
asrar saleh
on Nov 01, 2024
Verified
An adjustable-rate mortgage involves no government backing unless the interest rate rises by 1%.
Adjustable-Rate Mortgage
A mortgage loan with an interest rate that can fluctuate over time based on changes in a corresponding financial index that's attached to the loan.
Government Backing
Support or endorsement provided by a government, which can include financial guarantees, subsidies, or other forms of assistance.
- Gain understanding of the ramifications of unique loan aspects such as rates that adjust over time, significant final payments, and support from governmental entities.
Verified Answer
NB
Learning Objectives
- Gain understanding of the ramifications of unique loan aspects such as rates that adjust over time, significant final payments, and support from governmental entities.
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