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What is an Option ARM Loan (Adjustable Rate, Flexible Payment)?

April 26, 2017Adjustable arm loan option option arm rate

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What is an Option ARM Loan (Adjustable Rate, Flexible Payment)?

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An Option ARM Loan is an Adjustable Rate Mortgage where the interest rate is adjusted monthly, yet the payments adjust annually. Payment options are provided to you on each monthly statement. Pay less than the interest owed, pay only interest, or even pay the normal principal and interest payment. On a $1,000,000 loan you could have monthly payments as low as $2529.