"Flex Arm" Mortgages

              The flex-arm mortgage is structured in a way that gives the borrower the flexibility of three payment options.  Each month the lender sends the borrower a payment coupon that calculates three payment options: negative amortization amount, interest-only amount, fully amortized amount.  This program is usually attractive to borrowers who are self-employed or those who have a commission based income.  This is because some months are slower than others, and the borrower will have several payment options.