What is an advantage of an adjustable-rate mortgage? a borrower always knows how much to pay the bank each month. a borrower can purchase a home with little financial risk. a drop in interest rates may result in lower monthly payments. a rise in interest rates may result in lower monthly payments.

The answer is "A drop in interest rates may result in lower monthly payments".

An adjustable-rate mortgage refers to a home loan that has an underlying period with a settled loan fee pursued by intermittent rate modifications. An adjustable-rate mortgage, or ARM, may sound hazardous. All things considered, your installments can increment or decline dependent on loan fee changes that are out of your control. Yet, at times, picking an ARM over a settled rate home loan could be a strong monetary choice, possibly sparing you a large number of dollars.

answer; the correct answer to the above statement is (true);