mortgage rate question

Business & Finance
Tutor: None Selected Time limit: 1 Day

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

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Jul 7th, 2015
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Jul 7th, 2015
Dec 5th, 2016
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