– An option arm (aka optional payment mortgage) is an adjustable-rate mortgage that allows the borrower to choose from four types of payment each month. The borrower can make a standard mortgage payment (principal, interest, taxes, insurance or PITI) that will pay off the loan off in 15 years or in 30 years.
Option ARM vs. Fixed Rate Mortgage Calculator – Typically, an option ARM has a low introductory interest rate that is fixed for a short period of time, perhaps one or three months. This means that your monthly mortgage payments will be fixed for this same one- or three-month period. Since the interest rate on an option ARM is generally much lower than a fixed rate mortgage, the monthly mortgage payments on option ARMs are usually much lower as.
Option ARMs for Dummies: Why 4.5 Percent Mortgages Rates. – I’ve been sorting through numerous e-mails especially after the 60 Minute show looking at Option ARM mortgages. If anything, I think the show has caused more confusion and I have even seen some articles posted online that are incredibly off base on this one subject area. Some now think that.
PDF History of the Option ARM; – Golden West Financial – History of the Option ARM Late in the first phase of the savings and loan debacle in May 1981, federal home loan bank board chairman Richard pratt authorized federal thrifts to originate a mortgage product other