100% Pay Option Arm???

Question

Whats the best way to make this loan work for you??

Answer 1

Usually option arms come with 3 or 4 options: interest only, full payment, or a minimum payment. The minimum payment does not cover the entire interest payment, so the extended amount is added on to the end of the loan. You can usually pay this amount in a lump sum, like when you get your tax return.

Option arms can work to your advantage if you use them correctly.