Google
 
Web www.refinance-refinance.net
« Apartment Mortgages
Mortgages & Home Ownership Costs »

Home Loans

How Does A Neg Am Calculator Work?
(presented by www.refinance-refinance.net - mortgage lenders)



By Ben Afzal

Neg Am Calculator

You can find many free online Neg Am calculators.

You will need to use a minimum payment rate, a loan balance, a loan term, an index value, and the loan margin.

The minimum payment rate is the rate at which the bank will allow you to make a minimum payment.

This minimum payment rate can be as low as 1%, although some lenders have offered minimum payment rates less than this.

The loan balance is the amount of the loan. For this discussion, assume the loan that has the Neg Am or minimum payment option loan is 80% or less of the value of a property.

(Article continues below)

HOME LOANS ADVERTISEMENT

The loan term on this type of loan is usually 30 years. Newer minimum payment option or cash flow ARMs allow borrowers to get 40 year terms instead. The longer loan term allows the minimum payment amount to be even lower than a comparable 30 year fixed.

The index is the interest rate index the loan is based on. It can be the CODI index, CODI index, LIBOR index, MTA index, or any other number of indexes.

The loan margin is the bank

===========================================
For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
===========================================

This entry was posted on Saturday, October 21st, 2006 at 6:30 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Comments are closed.