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
- Larry Ellison Is Leaving Oracle Inc.'s CEO Post, But He's Staying Close to Protect His $48 Billion N
- Meet Your Credit Card Spending Requirement With These Rewards Card Tips
- Can Netflix, Inc. Break Through Roadblocks In Europe?
- Is Bank of America One of the Best Companies in America?
- Defense News Roundup: "Military Intelligence" Costs $7.2 Billion
- Want to Graduate Faster? Consider an Accelerated Bachelor's Degree