Sally and Tom are about to get a mortgage for their first home. If they want to make the same monthly payments for the life of the loan, they should get an ARM (Adjustable Rate Mortgage).
True or False

False

Explanation:

An Adjustable Rate Mortgage is the opposite: it is a type of mortgage that has payments that vary throughout the period of loan. They vary according to some index, variable rate, or agreement between the loaner and the borrower.

Sally and Tom should seek a Fixed Rate Mortgage instead. That is a type of mortgage whose payments do not vary across the life of the loan. In other words, a Fixed Rate Mortgage is an annuity.

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