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sineoko [7]
3 years ago
10

Which of the following is a disadvantage of ARMs?

Social Studies
2 answers:
densk [106]3 years ago
8 0

Answer:

Payments may go up

Explanation:

Apex

DedPeter [7]3 years ago
5 0

<u>Answer:</u>

One of the disadvantages of ARM is that payments may go up.

Option: (B)

<u>Explanation:</u>

  • Adjustable-rate mortgages (ARMs) are the flexible loan system for the buyer of houses.
  • For the certain amount of period, the buyer can have the fixed interest and then it gets changed.
  • For example, 5/1 ARM means the house buyer has the fixed interest rate for 5 years and then it gets changed according to the index.
  • So, the main disadvantage of ARMs is that the payments may rise after the fixed period.
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