an adjustable-rate mortgage that carries an
an adjustable rate mortgage that is dubbed as being "flexible" because the borrower has the "option" as to how much he or she wants to pay in a given month
an adjustable-rate mortgage with a twist
a type of adjustable-rate mortgage with as many as four different monthly payment options and, depending on its underlying index, an interest rate that could change every month
a type of loan that allows the borrower to make payments that are less than the interest that is being charged on the loan
another term used for a negative amortization loan. Other terms include Deferred Interest and Flexible Payment Loans. This loan allows you the choice every month of what they want to pay. Your have the choice of 3 different payment options each month. The payment options are; 1) a minimum pay rate, 2) an interest only payment and 3) a principle and interest payment. Borrowers have these 3 choices every month. Borrowers decide what to pay based on their budget and cash flow.
A type of ARM (adjustable rate mortgage) loan financing that begins with a very low teaser rate and payment caps, which keeps the payments very low but produces negative amortization. The interest rates will move up sharply, but the required payments will not be enough to pay the interest due - and the unpaid interest is added to the principal balance. This is a very dangerous loan, especially for homeowners, because the loan balance will go up instead of down. A more detailed discussion is available in the "Option ARM Loans" article of the "Loan Programs" section.
An adjustable rate mortgage loan with the option of four different monthly payment amounts: minimum payment, interest only, full principal and interest (30-year term) and full principal and interest (15-year term). These loans typically have a low initial fixed interest rate for a specified period of time. Beyond the fixed interest period, rates are subject to adjust monthly based on the specified index. Payment option amounts after the initial fixed interest period are subject to change annually. Deferred interest, or negative amortization, is possible with these loans.
Also known as the "pick a payment" adjustable rate mortgage. This is a specialty type mortgage in which you can choose to make the deferred interest payment, interest only payment or the full principal and interest payment.