Contact Information
Mel Byrd Copper Rose Realty 6601 E. 22nd Street Tucson, AZ, 85710
Office: 520-250-7437 Cell: 520-250-7437
Buyer Resources
|
|
converting negative-amortization loan to a regular loan |
| Print |
|
Can I convert a negative-amortization loan to a regular loan?
Loan terms vary and each agreement needs to be reviewed carefully. Talk to your lender about specific situations.
Negative amortization occurs when monthly payments on a loan are not enough to pay the interest accruing on the principal balance. The unpaid interest is added to the principal due.
Adjustable rate mortgages with payment caps and negative amortization are usually reamortized at some point so that the remaining loan balance can be fully paid off during the term of the loan.
This could necessitate a substantial increase in the monthly payment.
Most ARMs have a limit on the amount of negative amortization allowed,
usually 110 to 125 percent of the original loan amount. If the loan
balance exceeds this amount, the borrower has to start paying off the
excess.
Negative amortization can be avoided by paying the additional interest
owed monthly. ARMs that don't have payment caps usually don't have
negative mortization.
Questions about Tucson East Arizona Real Estate?
Ask us below or Call us Now at 520.250.7437
|
|
Last Updated ( Wednesday, 30 July 2008 )
|
|
Market Info
|
Real Estate Market
|
|
Real Estate Market related articles from Real Estate Pro Articles |
-
Liguria A Region of Italy Offering Natural Beauties and a Strong Property Market
Liguria is the third smallest region in Italy Situated in the North-West, it is a narrow strip of land squeezed between the sea and the mountains Its beauty is really largely connected to this constant coexistence of sea and mountains: the Alpine chain has its origin here (at the 'Colle di Cadibona'), in this land especially known for the sea
|
|
