Jumbo Option ARMs
Option arm loans (also known as Payment Option Arms) are adjustable rate mortgages which have
multiple payment options including an interest only option. Option ARMs are usually based on the MTA index.
While the payment remains predictable at the beginning of the loan, the true rate changes on a daily basis.
Principal balance usually increases throughout the loan as the rate the payment is basis
on is almost always lower than the true rate. This difference is added to the principal balance.
The four payment options are usually:
- A minimum payment amount (usually based on around 1% amortized over 30 yrs) that adjusts once a
year and after a certain time period adjust to the index plus the margin. The payment increase each year
is usually capped at 7.5% for the first several years.
- An interest only payment based on the index plus the margin
- 30 year fully indexed principal and interest payment
- 15 year fully indexed principal and interest payment
Consult a licensed mortgage professional for details pertaining to any and all available home loan programs.
Not every applicant qualifies nor is every program available for each unique borrower. Interest
Only loans are simply another form of home financing and this website is purely for educational reasons and is
not an offer to loan or extend credit for any reason. We are not a mortgage lender or
mortgage broker. No part of this web site may be reproduced or transmitted in any form by any means
graphic, electronic, or mechanical without permission in writing from the publisher. All
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or recommendation by any of the parties.
Jumbo Fixed Rate Mortgages |
Jumbo Adjustable Rate Mortgages (ARMs) |
Jumbo Interest Only Mortgages
Jumbo Option ARMs |
Jumbo B/C Lending (Alternative Lending) |
Jumbo Construction Loans
