Question: Under which scenario is negative amortization likely to occur for an ARM loan? Payment Cap Interest Rates a. None Increasing b. 7.5% Decreasing c. None

Under which scenario is negative amortization likely to occur for an ARM loan?

Payment Cap Interest Rates

a.

None Increasing
b.

7.5% Decreasing
c.

None Decreasing
d.

7.5% Increasing

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