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krek1111 [17]
1 year ago
10

janice is extremely excited to have purchased her first home. she was able to lock in her monthly payment at a very low rate for

the first five years. in year six, janice’s payments will become significantly larger based on the going market rates. what type of loan does janice have?
Business
1 answer:
storchak [24]1 year ago
8 0

Janice have adjustable rate mortgage.

An adjustable-rate mortgage or ARM is a home loan with a variable interest rate. With the ARM, the initial interest rate is fixed for a period of time.

After that, the interest rate is applied on the outstanding balance resets periodically at yearly or even monthly intervals.

ARMs are also known as variable-rate mortgages and  floating mortgages. The interest rate for ARMs is reset based on a benchmark or index, plus an additional spread is also there which is called an ARM margin.

To know more about ARM here:

brainly.com/question/12345275

#SPJ4

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