BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A mortgage loan in which the interest rate and payment may change over the life of the loan is called:
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Adjustable Rate Mortgage
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Fixed Rate Mortgage
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Property Loan
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Explanation:
Detailed explanation-1: -An adjustable-rate mortgage (ARM) is a loan with an interest rate that changes. ARMs may start with lower monthly payments than fixed-rate mortgages, but keep in mind the following: Your monthly payments could change. They could go up-sometimes by a lot-even if interest rates don’t go up.
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