Question

Mortgage loans that allow the borrower to switch among a variety of payment arrangements throughout the life of the loan are more commonly referred to as:________

a. option ARM loans.
b. hybrid ARM loans.
c. subprime loans.
d. alt-A loans.

Answer 1

a. option ARM loans.

Step-by-step explanation:

Mortgage loans that allow the borrower to switch among a variety of payment arrangements throughout the life of the loan are more commonly referred to as option ARM loans. This type of loans are adjustable and as such the borrower can make lower payments.