Question

A mortgage where the interest owed changes in response to movements in a specific market-determined interest rate is called a(n)

Answer 1

Adjustable-rate mortgage

Step-by-step explanation:

An adjustable-rate mortgage is the structure of periodic payment on a mortgage. Before a certain point in time, the borrower will pay the fixed amount of money for monthly payment. Then when reaching a certain point, the rate of the loan can be fluctuated, comparing to the fixed-rate mortgage that the rate of the loan stays the same for the life of the loan.