Question

borrowers choosing an adjustable - rate mortgage
pay a higher interest rate during the first few years.
are often forced to sell their homes after the first year.
often pay a lower interest rate during the first few years.
agree to accept no risk when borrowing money.

Explanation:

An adjustable - rate mortgage (ARM) typically has a lower initial interest rate compared to a fixed - rate mortgage for the first few years. This is a common characteristic of ARMs. The first option is incorrect as it's the opposite of what happens. The second option is not a general rule for ARMs. The fourth option is wrong because ARMs do involve risk (e.g., interest rate changes).

Answer:

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