fully indexed rate: Negative Amortization, what is it and how does it affect me?
- 07/10/07 07:42 AM
In recent years there has been a lot of controversy surrounding the Option Arm loan (aka Negative Amortization or "Neg. Am." loan). Some of the stories we've heard would almost have you believe that the loan was a living and breathing thing that devours homes and people alike. Like all loans, the Option Arm has its niche client that it serves the best. First off let me briefly explain how the Option Arm loan works. There are three main components to any Option Arm loan the Index the Margin, and the Start rate. The index can be anything we use as … (1 comments)
In recent years there has been a lot of controversy surrounding the Option Arm loan (aka Negative Amortization or "Neg. Am." loan). Some of the stories we've heard would almost have you believe that the loan was a living and breathing thing that devours homes and people alike. Like all loans, the Option Arm has its niche client that it serves the best. ;)
;)
