mortgage rate question

label Business & Finance
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Luke purchased a new home with a mortgage that offers a fixed rate of interest for the first five years. After the fifth year, the mortgage rate adjusts annually based on interest rate movements in the market. This is an example of a:

A) Fixed rate mortgage
B) Interest-only mortgage
C) Growing-equity mortgage

D) Adjustable-rate mortgage (ARM) E) Reverse mortgage

Jul 7th, 2015

Thank you for the opportunity to help you with your question! Hi, He observes that work expands so as to fill the time available for its completion.

This is an example of Growing-equity mortgage

As the interest increases over time according to the set schedule.

thanks

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 7th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jul 7th, 2015
...
Jul 7th, 2015
Jun 25th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer