Originally Posted by Urchina
Here's a description of an option ARM: Option ARM Loan: Typical Features, Advantages, Pay Option ARMs
The biggest risk appears to be if you elect to pay only the minimum payment in the early years. This payment may allow you to defer interest, so your loan amount can actually increase, leading to much bigger payments later.
Why on earth are these things legal?
Everyone deserves to own a house.
No matter what their financial situation. Creative lending at its finest.