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    ence between what is paid and the interest accruing is added to the balance of the loan.

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    An Option ARM mortgage loan is a "Negative Amortization Mortgage," which means that if the borrower only pays the minimum payment each month the principal will build. By definition, a negative amortization mortgage is one, which has a low monthly payment that does not fully cover the accrued interest each month. Since the interest is not being fully paid, the difference between what is paid and the interest accruing is added to the balance of the loan.

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    the borrower only pays the minimum payment each month the principal will build. By definition, a negative amortization mortgage is one, which has a low monthly payment that does not fully cover the accrued interest each month. Since the interest is not being fully paid, the difference between what is paid and the interest accruing is added to the balance of the loan.

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    , a negative amortization mortgage is one, which has a low monthly payment that does not fully cover the accrued interest each month. Since the interest is not being fully paid, the difference between what is paid and the interest accruing is added to the balance of the loan.

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    cover the accrued interest each month. Since the interest is not being fully paid, the difference between what is paid and the interest accruing is added to the balance of the loan.

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    ence between what is paid and the interest accruing is added to the balance of the loan.

    Option ARM loans can be dangerous if the borrower is not prepared to refinance in a few years or is unable to accept higher payments. Lenders and brokers have an obligation to educate their clients to help them minimize the chance of future problems. Borrowers, like many uninformed article writers, blame the Option ARM Loan when in fact they should blame the loan officer

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