When we talk about an adjustable rate mortgage we're talking about a loan that is adjusted in a way to increase and decrease the amount but the payment always remains the same.
Is this fact true or false ?
Take your time. The solution is posted below the wildlife photo.
The payment amount and the interest rate on an adjustable rate mortgage are adjusted at intervals in the loan cycle.
The adjustable rate mortgage is based on an index and the payment may increase or decrease depending on the index.
The index is a publ;ished statistical revue that analyzes the costs of borrowing money. It's the foundation for the adjustable rate mortgage.
COFI is an example.