1
Q
What are the main indexes
A
LIBOR, COFI, CMT, Prime Rate
2
Q
A margin is also known as the:
A
Spread
3
Q
A starting rate can last from:
A
one to ten months
4
Q
When the introductory rate is lower than the real rate (fully indexed rate)
A
teaser rate
5
Q
The length of time between interest changes on ARMS
A
Rate adjustment period
6
Q
ARM loans help avoid _______ with built in protection called caps
A
payment shock
7
Q
Allows payment of interests only for a specified number of years (typically between 3 to 10 years)
A
Interest Only ARM
8
Q
When Option ARMS are automatically adjusted every 5 years
A
Recast
General Mortgage Knowledge
flashcards
Decks in class (8)
# Cards
