An option ARM is another variety of an adjustable rate mortgage with a teaser interest rate. In this variant the borrower has the option to select between several payment schedules when the ARM resets. One of them probably includes a balloon payment.
Related Fool Articles
Recent Mentions on Fool.com
- Can Pandora Bounce Back From Last Week's 11% Drop?
- CVS Health Plays Favorites with New Cholesterol Drugs
- Here?s How Intel Corp.?s Data Center Chief Views Potential Competitive Threats
- Can Merck & Co. Take Down Gilead Sciences?
- Beyond Chemotherapy: 4 Unique Ways Drug Developers Are Fighting Back Against Cancer
- How to Get a Mortgage: 5 Critical Tips