Definition of Option ARM: "Option ARM Mortgages - THE WHAT, WHY & HOW
The Options Adjustable Rate Mortgage is an ARM (Adjustable rate Mortgage) like most others in its origins. It consists of taking an index, most commonly the MTA (12 month Treasury Average), CODI (Cost of Deposit Index), and COSI (Cost of Savings Index), then adding a margin to total the final interest rate."
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