Option ARM definition

Option ARM means an adjustable rate mortgage loan with flexible payment options (a) on which the Mortgagor may pay a low rate of interest for the initial Monthly Payments and a substantially higher rate of interest in the later years of such Mortgage; (b) which is underwritten in accordance with the Underwriting Guidelines and (c) for which the related Mortgagor has a FICO score greater than 660.
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Option ARM means a right to buy or sell the obligation to deliver a specified amount of a financial instrument for a specific price or yield on or before a specific date in the future.
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Option ARM means an adjustable rate first lien mortgage with flexible payment options which combine several of the features described below in clauses (a)(i) through (a)(iv) and permit the borrower to elect whether to make a monthly payment sufficient to pay accrued interest and amortize the principal balance, make an interest-only payment or make a minimum payment that may be insufficient to pay accrued interest (with the unpaid interest added to the principal balance of the loan) and which
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Examples of Option ARM in a sentence

  • Negative Amortization Numeric – Integer 12 999 Negatively Amortizing ARMs Only >= 0 to <=120 62 Option ARM Indicator An indicator of whether the loan is an Option ARM.

  • Option ARM Numeric – Integer 2 99 Option ARMs Only N/A 1= Fully amortizing 30 year 2= Fully amortizing 15 year 3=Fully amortizing 40 year 4 = Interest-Only 5 = Minimum Payment 99= Unknown 64 Initial Minimum Payment The initial minimum payment the borrower is permitted to make.

  • Option ARM Numeric – Decimal 879.52 99 Option ARMs Only >=0 65 Current Minimum Payment Current Minimum Payment (in dollars).

  • No Mortgage Loan (other than an Option ARM Loan) contains terms or provisions which would result in negative amortization.

  • Principal payments on the Mortgage Loan (except with respect to an Option ARM Loan) commenced no more than sixty (60) days after funds were disbursed in connection with the Mortgage Loan.

  • In the 1980s and 1990s, the Option ARM was primarily a niche product directed towards sophisticated borrowers.

  • Except with respect to Option ARM Mortgage Loans, no Mortgage Loan contains terms or provisions which would result in Negative Amortization.

  • The initial principal amount of the Mortgage Loans shall be the aggregate Stated Principal Balance of the Mortgage Loans, so computed as of the related Cut-off Date, after application of scheduled payments of principal due on or before the related Cut-off Date, whether or not collected (except with respect to Option ARM Mortgage Loans, in which case, to the extent received).

  • This is where the unique features of the Option ARM come into play.

  • Except with respect to the Option ARM Mortgage Loans, each BANA Mortgage Note requires a monthly payment which is sufficient to fully amortize the original principal balance over the original term thereof and to pay interest at the related Mortgage Interest Rate.


More Definitions of Option ARM

Option ARM means an Asset-Backed Security where the security is backed by cash flows from a pool consisting in whole or in part of pay-option adjustable rate Residential Mortgage Loans.
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Related to Option ARM

  • Option means a stock option granted pursuant to the Plan.

  • Nonstatutory Stock Option means an Option not intended to qualify as an Incentive Stock Option.

  • Stock Option means a contractual right granted to an Eligible Person under Section 6 hereof to purchase shares of Common Stock at such time and price, and subject to such conditions, as are set forth in the Plan and the applicable Award Agreement.

  • Option Exercise Period has the meaning set forth in Section 6.4.

  • Option Agreement means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan.

  • Nonqualified Option means any Option that is not an Incentive Stock Option.

  • ISO means an employee incentive stock option described in Section 422(b) of the Code.

  • Option Period means the period during which an Option may be exercised.

  • Stock Option Agreement means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her Option.

  • Option Right means the right to purchase Common Shares upon exercise of an option granted pursuant to Section 4 of this Plan.

  • Option A has the meaning assigned that term in Section 8.03(e).

  • Company Stock Option means any option to purchase one or more shares of the Company’s Common Stock granted under any of the Company Stock Plans.

  • Option Grant Date means, as to any Stock Option, the latest of:

  • Incentive Stock Option means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

  • Share Option means a Nonqualified Share Option or an Incentive Share Option.

  • Shoe Option means the Initial Purchasers’ option to purchase up to seventy five million dollars ($75,000,000) aggregate principal amount of additional Notes as provided for in the Purchase Agreement.

  • Incentive Option means an Option which by its terms is to be treated as an “incentive stock option” within the meaning of Section 422 of the Code.

  • Notice of Stock Option Grant means the document so entitled to which this Agreement is attached.

  • Option 3 [ ] A Participant satisfies the Plan's Early Retirement Age conditions by attaining age ________ (not less than 55) and completing ________ Years of Vesting Service.

  • Reload Option means any Option granted under Section 6(a)(iv) of the Plan.

  • Stock Option Plan means any stock option plan now or hereafter adopted by the Company or by the Corporation, including the Corporate Incentive Award Plan.

  • Stock Option Plans means any stock option plan now or hereafter adopted by the Partnership or the General Partner.

  • NQSO means any Option that is not an ISO.

  • Non-Statutory Stock Option means a right to purchase Common Stock granted to an Eligible Recipient pursuant to Section 6 of the Plan that does not qualify as an Incentive Stock Option.

  • Option Exercise Price means the price at which a share of Common Stock may be purchased upon the exercise of an Option.

  • Option Term means a period, if any, through which this Agreement may be or has been extended by the JBE.