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Question # 48

A borrower takes a 3/1 ARM. What does “3/1” mean?

Options:

A.

The loan has a 3-year repayment period with 1% down.

B.

The rate is fixed for 3 years, then adjusts annually.

C.

The loan can only be refinanced after 3 years with a 1% penalty.

D.

The loan amortizes in 3 years but has 1 year of interest-only payments.

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NMLS Overview

Name SAFE Mortgage Loan Originator
Code NMLS
Vendor Finance, Insurance and Real Est
Certification Nationwide Multistate Licensing System (NMLS)

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