An option ARM mortgage gives the borrower the option to reduce the monthly interest being charged on the mortgage.

Name: An option ARM mortgage gives the borrower the option to reduce the monthly interest being charged on the mortgage.
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An option ARM mortgage allows the borrower to choose from different payment options, such as a minimum payment, interest-only payment, or a fully amortizing payment, but it does not reduce the interest rate itself.

An Option ARM Mortgage Gives the Borrower the Option to Reduce