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3 Cards in this Set
- Front
- Back
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Hybrid ARM
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Mortgage loans that have a set rate for an initial period of time & then have certain adjustable rate periods. All hybrid ARMs are amortized over 30 years.
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Option ARM
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Also called "pay-option" ARM, offers the borrower flexible payment options prior to the date of adjustment. The typical options are 30 yr fully amortizing, interest only, 15 yr fully amortizing & specified minimum payment (results in negative amortization).
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Non-traditional ARM
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Mortgage loan is either an interest-only ARM where only interest is paid on the loan or an option ARM that can result in negative amortization.
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