SAT College

Pros and Cons of Adjustable-Rate Mortgages
An adjustable-rate mortgage (ARM) is another common type of mortgage. Determine whether each factor is a pro or
a con of an ARM, and place it in the correct category.
riskier than fixed-rate mortgages
Pros of Adjustable-Rate Mortgages Cons of Adjustable-Rate Mortgages
higher payments possible
lower interest rates possible
interest rates can be raised
low beginning interest rate

Answers

Answer 1

Adjustable-Rate Mortgages are home loans that have varying interest rates. Consistent payments and lower interest rates are possible are the pros of ARS.

What is ARM?

Adjustable-Rate Mortgages (ARM) is a loan that has been granted for homes and does not have fixed interest rates as it depends on the market. It is also called a variable-rate mortgage.

ARS mortgage type has a consistent payment mode that is convenient and lowers interest rates might be possible over time. But interest may increase which can be a possible disadvantage.

Therefore, payment in ARS may increase or decrease.

Learn more about ARS here:

https://brainly.com/question/12345275

#SPJ1

Answer 2

Answer: Pros

lower interest rates are possible

low beginning interest rate

cons

interest rates can be raised

riskier than fixed-rate mortgages

higher payments possible

Explanation: I was right on Edge

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