Option Arm Continued……

  • Option #2 No Deferred Interest
Pays all interest for the current month. Payments remain manageable with no change in your principal balance for the month. No deferred interest occurs with this choice.
  • Option #3 Pays Your Interest & Principal
Pays off your loan within the 30-year time frame. Fully amortizing 30-year principal and interest payment. Payment based on the 12 Month Treasury Average plus margin, which is calculated monthly.No deferred interest occurs with this choice.
  • Option #4 For Quick Equity
     For the fastest equity build-up (leading to a quicker loan       
     payoff). Fully amortizing 15-year principal and interest
     payment. Payment based on the 12 Month Moving Treasury
     Average Index plus margin, which is calculated monthly. No     
     deferred interest occurs with this choice.


Managing cash flow represents one of life's ultimate challenges. There just never seems to be enough money.
Among the endless daily expenses tapping one's take-home pay, our mortgage payment still remains the largest fixed monthly expense for most homeowners.

For more than two decades West Coast homeowners have used Option ARM-type mortgages to bridge the gap.

To understand the potential benefits Option ARM's may offer, you must understand how ANY adjustable rate functions and what's important to evaluate.