Option ARM Mortgage Loan definition

Option ARM Mortgage Loan. An adjustable rate Mortgage Loan, as designated in the Underwriting Guidelines, that gives the related Mortgagors three different payment options each month, which include: (i) a minimum monthly payment option, (ii) an interest-only payment option or (iii) a full principal and interest option which amortizes over 30 years or less.

Option ARM Mortgage Loan. An Adjustable Rate Mortgage Loan with an original term to maturity of not more than thirty (30) years and with respect to which the related borrower may choose a flexible payment option each month pursuant to the terms of the related Mortgage Note.

Option ARM Mortgage Loan. An Adjustable Rate Mortgage Loan which (i) provides the Mortgagor with multiple Monthly Payment options and (ii) may result in Negative Amortization.

Examples of Option ARM Mortgage Loan in a sentence

• No Mortgage Loan (other than an Option ARM Mortgage Loan) is subject to negative amortization.

• With respect to any Option ARM Mortgage Loan or Mortgage Loan that provides for a fixed period of interest-only payments at the beginning of its term, at the end of the option period or such interest-only period, as applicable, the Monthly Payment will be recalculated so as to require Monthly Payments sufficient to amortize the Mortgage Loan fully by its stated maturity date.

• Other than an Option ARM Mortgage Loan, no Mortgage Loan is a Balloon Mortgage Loan.

• Other than with respect to an Option ARM Mortgage Loan, no Mortgage Loan contains terms or provisions which would result in negative amortization.

• The Index applicable to each Adjustable-Rate Mortgage Loan or Option ARM Mortgage Loan will be indicated on the related Mortgage Loan Schedule.

More Definitions of Option ARM Mortgage Loan

Option ARM Mortgage Loan means an Adjustable Rate Mortgage Loan in respect of which the related Mortgage Note provides the Mortgagor with multiple monthly payment options.

Option ARM Mortgage Loan means a first lien Mortgage Loan that has been originated in accordance with the Prime Underwriting Guidelines for adjustable rate mortgage loans with options for the related Mortgagor as to each Monthly Payment.

Option ARM Mortgage Loan means an adjustable rate first lien mortgage with flexible payment options (a) which allows the Mortgagor to vary the monthly payment amount from time to time, (b) for which the related Mortgage Property is owner occupied, (c) for which the related Mortgagor has a FICO score of at least 680 and (d) is underwritten in accordance with the Underwriting Guidelines.

Option ARM Mortgage Loan. An Adjustable-Rate Mortgage Loan with respect to which the related Mortgagor may choose a flexible payment option each month pursuant to the terms of the related Mortgage Note, as identified on the Mortgage Loan Schedule.

Option ARM Mortgage Loan. An adjustable rate Mortgage Loan that (i) requires a fixed monthly payment through maturity based on the initial interest rate and an either 30 or 40 year amortization schedule, (ii) all interest accrued in excess of such initial interest rate after any adjustment date is capitalized and (iii) the borrower is not prohibited at any time from making additional payments of principal and/or interest."

Option ARM Mortgage Loan means an adjustable rate mortgage with flexible payment options (a) which the Mortgagor may pay an initial low rate for the initial Monthly Payments and a substantially higher rate in the later years of such Mortgage, (b) is underwritten in accordance with the Underwriting Guidelines and (c) which is the subject of a loan level Take-out Commitment with a Take-out Investor.

Option ARM Mortgage Loan means any adjustable rate mortgage loan with flexible payment options.