Question: What is an option ARM? What are the different options available with this type of mortgage?

What is an option ARM? What are the different options available with this type of mortgage?

Step by Step Solution

★★★★★

3.43 Rating (178 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Option ARMs also called pickapayment or payoption ARMs are 15 or 30year adjustable rate mortgages that offer the borrower several monthly payment options The four major types of payment options includ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

403-B-B-F-M (1509).docx

120 KBs Word File

Students Have Also Explored These Related Banking Questions!

What is an option on a futures contract?

Answer the below questions. a. What is an option ARM loan? b. Why is it unlikely that this loan type will be originated in the future?

What is an option premium? What is an options intrinsic value? What other factors, besides intrinsic value, can affect the size of an option premium?

What is an option ARM? What are the different options available with this type of mortgage? (LG 7-5) LO.1

What is an option ARM? What are the different options available with this type of mortgage? ( LG 7-5 )

10. What is an option ARM? What are the different options available with this type of mortgage? (LG 7-5)

What is an option ARM? What are the different options available with this type of mortgage? (LG 7-5) AppendixLO1

Guide to UAE Mortgages, Home Loans and Home Finance Considering a mortgage or a home loan is a long-term commitment, it is important take time required to do your homework and find out the different...

There are two different options available on non-dividend paying Stock FE1 and non-dividend paying stock FE2: Stock FEL: The initial stock value is RM31. A European 3-month put option on the stock...

Write the APT geometry statements to define the outline of the part. Use the lower left corner of the part as the origin in the x-y axis system.

Micro Machines Inc. declared a cash dividend of $1.50 per share on its 2 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on...

Products versus Services, Cost Assignment Holmes Company produces wooden playhouses. When a customer orders a playhouse, it is delivered in pieces with detailed instructions on how to put it...

list project activities and their corresponding start and completion dates. A. PERT Chart B. * Gantt Chart C. Organizational Chart D. Project Chart

Webb Bank has a composite CAMELS rating of 2, a total risk-based capital ratio of 10.2 percent, a Tier I risk-based capital ratio of 5.2 percent, and a Tier I leverage ratio of 4.8 percent. What...

If the reserve computation period extends from May 18 through May 31, what is the corresponding reserve mainte- nance period? What accounts for the difference? (LG 13-4)

Two depository institutions have composite CAMELS rat- ings of 1 or 2 and are 'well capitalized." Thus, each institu- tion falls into the FDIC Risk Category I deposit insurance assessment scheme....

Are the two events in each scenario mutually exclusive or not? Explain (no mark will be given without a correct explanation). a) Rolling a sum of 5 or a sum of 9 with a pair of 6-sided dice, numbered...

1. If you use a 110-age investing rule and are 25 years old, what percent would you place in bonds? 15%; 25%; 75%; 85% 2. You are looking at a 2050 target date fund. What does that mean? - The fund...

1-1 online - Investment and Financial Strategies 1 if a mutual fund has $165 milion in assets, $10 million in accrued liabilities and 25 million shares outstanding Compute the Net Asset Value (NAV)...