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What may be a concern if you have an adjustable rate mortgage (arm)? a. after the initial fixed rate period, your rate may increase. b. your payment will constantly change during your initial fixed rate period. c. after the initial fixed rate period, your rate may decrease. d. a portion of your rate pays the commission of your mortgage broker. please select the best answer from the choices provided a b c d

Respuesta :

The most appropriate concern in relation to the adjustable rate of the mortgage for the borrowers is the increase in rate after the initial fixed-rate period.

So, Option A is the correct answer.

What is the adjustable-rate mortgage?

ARM is the abbreviated form of adjustable-rate mortgage where the rate of interest variates over the life of a mortgage. There is a longer duration associated with the constant interest rate of an ARM at the time of taking the mortgage.

The interest rates in ARM are usually lower at the starting period but then rise or fall throughout its life. When the term of the mortgage expires, the lenders can easily modify the interest rates, that is, they can either increase or decrease the rates.  

Therefore, the rise in interest rates after the fixed period would be a concern for mortgage borrowers.

To learn more about the adjustable-rate mortgage here:

https://brainly.com/question/18870245

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