What distinguishes an Adjustable-Rate Mortgage (ARM) from a Fixed-Rate Mortgage?

Q. What distinguishes an Adjustable-Rate Mortgage (ARM) from a Fixed-Rate Mortgage?
Answer: The interest rate changes periodically based on a reference index.
Notes: An ARM features an interest rate that fluctuates periodically based on a reference index, unlike fixed-rate mortgages, which maintain a constant interest rate throughout the loan term.

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📌 Question Number: 12 in Mortgage Services in the above course in App.