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July 18, 2006
Negative Amortization Loans: Are these Mortgage Options ARMed and
Negative amortization mortgages could be considered very risky. In a negative amortization mortgage, the payments only have one part. The payment made to the lender covers only a portion of the interest earned. The balance of the interest earned is added to the mortgage balance, hence the term negative mortgage. The negative amortization is also called a "neg am" loan is a loan with an deferred interest loan that offers a low payment initially. A danger is the loan balance exceeding the market value of the property. A secured loan may become unsecured and the ability to put a second mortgage behind negative ARM option loans may be questionable. If you aren't prepared for the deferred interest that could affect your home equity, then this loan is not for you. If you understand the risks, but need a low monthly payment to help you get in the right home, then this loan is for
From Negative Amortization Loans: Are these Mortgage Options ARMed and
Posted by Michael at July 18, 2006 08:21 AM
