1) Sandra Baker has contracted to buy a house and is working with a mortgage broker. Sandra is concerned about meeting the monthly payment obligations of a loan, and the mortgage broker suggests she go with an adjustable-rate mortgage loan. Sandra knows that with the lower starting interest rate on an adjustable rate loan, the initial monthly payments will be easier for her to meet. she is concerned about what will happen down the line when that rate increases. The mortgage broker say to her, Oh, you can always refinance later. Do you believe the mortgage broker is giving her sound advice? why or why not?
