While Interest Rates Have Been Historically Low for the Past

While interest rates have been historically low for the past 8 years, rates have started to increase and may continue to rise over the coming year. Given the interest rate environment, which type of mortgage would be best for your new home?

A) Variable rate interest only mortgage since the payments would be the lowest
B) A 5-year adjustable ARM
C) A 30-year conventional fixed-rate mortgage
D) A one-year adjustable ARM with a 6% cap

Correct Answer:

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