MLchartDataset catalogue

Option ARM

Term · Law · MLC-T-LAW-003563

An adjustable-rate mortgage (ARM) that allows the borrower to choose from several payment options each month, including a minimum payment that may not cover all accrued interest. This can lead to negative amortization, where the loan balance increases over time. The interest rate on an option ARM adjusts periodically based on an index such as the London Interbank Offered Rate (LIBOR).

Table 1. Record
IdentifierMLC-T-LAW-003563
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-003563",
  "term": "Option ARM",
  "field": "Law",
  "definition": "An adjustable-rate mortgage (ARM) that allows the borrower to choose from several payment options each month, including a minimum payment that may not cover all accrued interest. This can lead to negative amortization, where the loan balance increases over time. The interest rate on an option ARM adjusts periodically based on an index such as the London Interbank Offered Rate (LIBOR).",
  "url": "https://mlchart.com/terminology/law/option-arm/"
}

Record 3,560 of 5,445 in Law terminology (MLC-0107). Request the full dataset.