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The option ARM allow borrowers to choose their mortgage payment. The minimum payment pays no principal, and less interest than what accrues on the loan.

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The "option" ARM allow borrowers to choose their mortgage payment. The minimum payment pays no principal, and less interest than what accrues on the loan. Consider a $100,000 loan at 6% interest with 30 year amortization. Below what payment amount, would this loan have negative amortization? That is, what monthly payment would only cover the interest? $500 $600 $700 $800 $900

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