Flexible-payment ARMs bring high rewards, high risks

Borrower beware of 'payment shock' when monthly installments begin to rise
Published on Feb 9, 2004

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by CareyBot

“Can you explain flexible-payment ARMs, and their pros and cons?” A flexible-payment ARM (FPARM) is an adjustable-rate mortgage that allows (but does not compel) borrowers to make very low initial mortgage payments that rise over time. The major drawback is ...