Option ARM

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January 1, 1 7 min read Definitions

Option ARM Adjustable-Rate Mortgage Negative Amortization Mortgage Payment Options Flexible Mortgage Interest-Only Payments Real Estate Financing Loan Management

An Option ARM (Adjustable-Rate Mortgage) is a type of mortgage loan that allows borrowers to select from multiple payment options each month, enabling flexibility based on financial circumstances. These payment options typically include fully amortizing payments, interest-only payments, and minimum payments that can lead to negative amortization.