Borrowers choosing an adjustable-rate mortgage

a. pay a higher interest rate during the first few years.

b. are often forced to sell their homes after the first year.

c. often pay a lower interest rate during the first few years.

d. agree to accept no risk when borrowing money.

Answer: C) Pay a lower interest rate during the first few years

The idea is that they pay a lower amount at first, but then the rates usually increase until they hit a set limit.

An adjustable-rate mortgage is a home loan with an initial period with a fixed interest rate followed by periodic rate adjustments.

Hence, option C is the correct answer.

Borrowers often pay a lower interest rate during the first few years.

These come with low introductory rates and prove to be good for borrowers who often plan to pay off their mortgage a few years after buying a home.