Mortgage loans that allow the borrower to switch among a variety of payment arrangements throughout the life of the loan are more commonly referred to as:

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Mortgage loans that allow the borrower to switch among a variety of payment arrangements throughout the life of the loan are commonly referred to as option ARM loans. Subprime loans typically refer to loans given to borrowers with poor credit histories or a high risk of default. Hybrid ARM loans have fixed interest rates for a certain period before adjusting, and alt-A loans are loans given to borrowers who do not fit the criteria for prime loans but are not necessarily subprime borrowers.

Mortgage Loans That Allow the Borrower to Switch Among a Variety