The option ARM allows the borrower additional flexibility by providing several possible payment options to the borrower each and every month. In addition to payment flexibility, the option ARM allows a borrower to qualify for a more expensive home with its low introductory start rates and low qualifying rates. As with other ARMs, the option ARM is best suited for those borrowers interested in owning the home for a shorter period of time. Possible payment options for the borrower include:

• the minimum payment option
• the interest only payment option
• the fully amortized 30 year payment option
• the fully amortized 15 year payment option