Option ARM Loan

Option ARM mortgages, which allow borrows to defer or prepay interest at will by offering four monthly payment options, are known and marketed under a variety of names:

The following is an attempt to assemble a rather exhaustive list of all the names by which Option ARM mortgages and other mortgages with payment options are known:

Option ARM

Pick A Pay

Fixed Rate Pick a Pay

Pick A Payment

Minimum Payment Option Mortgage

Secure Advantage Loan

Smart 30 Mortgage

Pick Your Payment

Cash Flow ARM

1 Month MTA Option ARM

1 Month Option ARM

Cash Flow Option Loan

COSI ARM

Deferred Interest Mortgage

Negative Amortization Mortgage

Flex 5

Pay Option ARM

Neg Am Loan / NegAm Mortgage

Fixed Option ARM

Investor ARM or Investment ARM

Flex Pay Option

Fixed Rate Pay Option

Payment Option ARM

Power Option

Payment Advantage Mortgage

COFI ARM

30 Year Fixed Option ARM

One Percent Mortgage Solution

1% Mortgage

Negative Mortgage

quicken loans smart choice loan

Even thought the option ARM mortgage has many different names it is still essentially the same product from lender to lender.

COFI, COSI, CODI ARM

If you are considering one of these loans, make sure you are living in an area with moderate gains and not using the minimum payment option every month because if you are making only a minimum payment you could possibly lose some of your equity due to negative amortization.

Pay-Option ARM

Quicken buyers advantage loan

NegAm

PayOption

GPM

The Secure Option Arm

Hybrid Option Arm

5 Yr Hybrid Option Arm

5 Yr Fixed Option Arm

Adjustable Rate Option ARM

Option Plus Loan

Hybrid ARM

30 Year Flex Pay Plus

An Option ARM Loan may increase your principal owed due to negative amortization when the monthly payment is less than the interest accrued for the month. The loan will usually be recast when the pricipal rises to 110% of the beginning principal balance.

» DISCLAIMER: The information contained in this article on 'Option ARM Loan' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.