Question

Why would a home buyer choose an adjustable-rate mortgage?

A.
The borrower can adjust the monthly payment depending on his or her income.
B.
The initial interest rate on an adjustable-rate mortgage is typically lower than the rate on a fixed-rate mortgage.
C.
The monthly payment doesn’t change for the entire duration of the loan.
D.
The borrower can make a down payment and pay the remaining loan amount at the end of the loan period.

Answer 1

Answer:

B

Explanation:

Did it on plato

Answer 2

A home buyer choose an adjustable-rate mortgage because the initial interest rate on an adjustable-rate mortgage is typically lower than the rate on a fixed-rate mortgage.

What is adjustable-rate mortgage?

This is a type of mortgage that is subject to change, whereby the interest rate to be paid, will be different due to applied benchmark.

Hence, a home buyer choose an adjustable-rate mortgage because the initial interest rate on an adjustable-rate mortgage is typically lower than the rate on a fixed-rate mortgage.

Learn more about adjustable-rate mortgage here: https://brainly.com/question/545887

#SPJ2