Based on the fact that this is the first year rate on an adjustable rate mortgage, the Johnsons are most likely seeing a teaser rate.
What is a teaser rate?
This is a rate that is commonly included with an adjustable rate mortgage to entice customers to take out such loans.
It is normally lower than the market rate, but only for a short time before the bank modifies the mortgage.
Find out more on adjustable rate mortgages at https://brainly.com/question/545887.
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