Option ARM Law and Legal Definition
Option ARM is a mortgage loan where the interest rate on the note is periodically adjusted based on a variety of indices. It is a type of adjustable rate mortgage that allows the borrower to choose the payment amount, each month. Usually it is from the following four options: a minimum payment based on the borrower's initial interest rate, a payment that covers the interest that has accrued that month, a fully amortizing 30-year payment, or a fully amortizing 15-year payment.
Legal Definition list
Related Legal Terms
- Abandonment [Intercountry Adoption]
- Abandonment Option
- Accompanying the Armed Forces outside the United States
- Accredited Agency [Adoption]
- Accredited Body [Adoption]
- Accrediting Entity [Adoption]
- Actual Bodily Harm
- Adoption
- Adoption and Foster Care Analysis and Reporting System (AFCARS)
- Adoption and Safe Families Act (ASFA)
