An adjustable-rate mortgage (ARM) is a home loan with an interest rate that can change over time, usually in relation to a __________.
Flip flashcard to reveal answer
The correct answer is...
financial index
Go Back
Next card
The __________ is the benchmark interest rate that reflects market trends and fluctuates over time.
Flip flashcard to reveal answer
Go Back
The correct answer is...
index
Go Back
Next card
With ARMs, there is the concern of the rate substantially increasing after the initial period. To combat this, __________ are implemented which limit how much the rate can increase at one time or over the life of the loan.
Flip flashcard to reveal answer
Go Back
The correct answer is...
rate caps
Go Back
9.1.14 Flashcard Review
Amanda Ukasick
Created on September 13, 2025
Start designing with a free template
Discover more than 1500 professional designs like these:
View
Interactive Hangman
View
Secret Code
View
Branching Scenario: Academic Ethics and AI Use
View
The Fortune Ball
View
Repeat the Sequence Game
View
Pixel Challenge
View
Word Search: Corporate Culture
Explore all templates
Transcript
An adjustable-rate mortgage (ARM) is a home loan with an interest rate that can change over time, usually in relation to a __________.
Flip flashcard to reveal answer
The correct answer is...
financial index
Go Back
Next card
The __________ is the benchmark interest rate that reflects market trends and fluctuates over time.
Flip flashcard to reveal answer
Go Back
The correct answer is...
index
Go Back
Next card
With ARMs, there is the concern of the rate substantially increasing after the initial period. To combat this, __________ are implemented which limit how much the rate can increase at one time or over the life of the loan.
Flip flashcard to reveal answer
Go Back
The correct answer is...
rate caps
Go Back