Borrowers need to lower their monthly payment drastically, can someone advise? Thanks

Nope. That isn't the intent of an Option ARM and lenders are not going to expose themselves to that kind of risk.

Info you provided is to sketchy to be sure what to recommend with much confidence but this may help. I am assuming a refi for someone with not great credit. If the borrower has been on time (no lates beyond 30 days) with his mortgage and other debts (minor problems may be OK) for the last 12 months and has not been in a Chapter 7 within the last 2 yrs. have him check out a broker who does a lot of FHA manual underwrites. He may be able to get a much better rate (Fixed in the high 6's) than subprime. I would advise against getting an another ARM in this environment.

world savings is very liberal with credit if you have enough equity

Lime Financial