While historically super jumbo mortgages were primarily short term adjustable rate principal & interest mortgages, interest only options and payment cap or negative amortization loans (currently called "Option ARM" mortgages) were introduced to the category in the early 1980s to counteract typical 12% rates of the time. While 30 year fixed rate mortgages are available in the super jumbo category, they do not represent the majority of super jumbo mortgages. 3/1 ARM, 5/1 ARM, 7/1 ARM and 10/1 ARM Adjustable Rate Mortgages are more popular amongst super jumbo mortgage applicants than with the general public, however the greatest increase in originations as a category has been so called "exotic" Super Jumbo Mortgages. Offering interest only and negative amortization features, these loans allow borrowers to choose a lower payment option than a conventional principal & interest mortgage, often 10 to 20% lower in the case of interest only amortization and up to 50% lower or more in the case of deferred interest options.
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