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option arm in a sentence

  1. Variable-rate loans  Option Adjustable Rate Mortgages ( Option ARMs ) in particular  were especially attractive, because they carried higher fees than other loans and allowed WaMu to book profits on interest payments that borrowers deferred.
  2. In addition, Option ARMs typically have automatic " recast " dates ( often every fifth year ) when the payment is adjusted to get the ARM back on pace to amortize the ARM in full over its remaining term.
  3. If you are delinquent, the default must have been due to the payment shock of an interest rate reset or, in the case of an Option ARM, the " recasting " of the mortgage to fully amortizing.
  4. The report found that WaMu sold high risk Option Adjustable-rate mortgages ( Option ARMs ) in bulk, specifically to the Federal National Mortgage Association ( Fannie Mae ) and Federal Home Loan Mortgage Corporation ( Freddie Mac ).
  5. When a borrower makes a Pay-Option ARM payment that is less than the accruing interest, there is " negative amortization ", which means that the unpaid portion of the accruing interest is added to the outstanding principal balance.
  6. It's difficult to find option arm in a sentence.
  7. As an Alt-A lender, IndyMac s business model was to offer loan products to fit the borrower s needs, using an extensive array of risky option-adjustable-rate-mortgages ( option ARMs ), subprime loans, 80 / 20 loans, and other nontraditional products.
  8. Option ARMs are often offered with a very low teaser rate ( often as low as 1 % ) which translates into very low minimum payments for the first year of the ARM . During boom times, lenders often underwrite borrowers based on mortgage payments that are below the fully amortizing payment level.
  9. YourLenderForLife . com is a virtual supermarket of loan products : first mortgages, second mortgages, refinances, 15 year, 30 year fixed rates, the new 40 year mortgage, adjustable rate mortgages or ARM's as they are called, Interest only loans and even the wildly popular 1 % " pick-a-pay " option ARM loan.
  10. It held as assets of $ 118.9 billion in single-family loans, of which $ 52.9 billion were " option adjustable rate mortgages " ( Option ARMs ), with $ 16 billion in subprime mortgage loans, and $ 53.4 billion of Home Equity lines of Credit ( HELOCs ) and credit cards receivables of $ 10.6 billion.
  11. When evaluating an Option ARM, prudent borrowers will not focus on the teaser rate or initial payment level, but will consider the characteristics of the index, the size of the " mortgage margin " that is added to the index value, and the other terms of the ARM . Specifically, they need to consider the possibilities that ( 1 ) long-term interest rates go up; ( 2 ) their home may not appreciate or may even lose value or even ( 3 ) that both risks may materialize.
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