Pay option ARMs remained a popular product for borrowers in the second quarter with volume jumping by 26.2 percent, a new Inside Alternative Mortgages analysis reveals. Overall, an estimated $138 billion in new option ARMs – or loans that allow borrowers to choose among a minimum, interest only, or fully-amortizing payment each month – were originated during the first half of 2006. In the second quarter, volume totaled $77 billion, up from just $61 billion in the first quarter... [One data chart ranking included.]