Question

What is a periodic adjustment cap?

O A. A limit on how many times the rate can be adjusted
B. A limit on how much an ARM's interest rate can change at each
adjustment period
O C. A limit on a loan's initial interest rate
OD. A limit on how many years a loan can be for

Answer 1

Answer: B. A limit on how much an ARM’s interest rate can be changed at each adjustment period

Explanation: