The Hybrid ARM Attempts to Balance the Fixed Payment Desire

Multiple Choice

The hybrid ARM attempts to balance the fixed payment desire of a borrower with the lender's desire to increase interest rates if market rates rise in the future. In its most common form, known as a 2-28, the hybrid ARM will have a fixed-interest rate for:

A) 1 year
B) 2 years
C) 26 years
D) 28 years