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Fortunately, there
are limits. Typically, a fully adjusted ARM would have a ceiling
of about 12%.
There are
additional options on Adjustable Rate Mortgages, such as
interest-only or even reverse amortization loans, often called
Payment Option Loans. ARMs
such as these allow home buyers to choose how much they want
their monthly payments to be, starting with a payment that does
not even have to cover the monthly interest.
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