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1.95% Cash Flow Option ARM

The 1.95% Cash Flow Option ARM is a product that offers you options for making your monthly mortgage payment. Like the 1% Pay Option ARM, there is a minimum monthly payment and also two fully amortized payment options each month. A fourth interest-only payment option becomes available if the interest-only payment exceeds the minimum monthly payment option. This payment option is a safeguard to prevent the borrower from accruing deferred interest, or negative amortization on the loan. If the interest-only monthly payment is made, there is no risk of accruing deferred interest.

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