Finance

A Florida mortgage that allows the borrower to make payments at their own schedule (as long as certain minimums are met) is called a(n):

AOption ARM (negative amortization mortgage)✓ Correct
BOpen-end mortgage
CPackage mortgage
DBlanket mortgage

Explanation

An Option ARM (also called a Pick-a-Payment or negative amortization mortgage) offers borrowers multiple monthly payment options including a minimum payment that may be less than the interest accruing, causing negative amortization (the loan balance increases).

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