Knowing Negative Amortization
As a real estate player, you have to know about the notion of negative amortization when it comes to your mortgage loan.
You may have heard this term being mentioned by savvy investors and those who know their stuff. Bankers may even attempt to sound professional by sprinkling this term all over their conversations with you.
A negative amortization mortgage loan is gaining widespread popularity. Negative amortization occurs when your payment or interest rate ceiling keeps the actual monthly installment below the level required by the current fluctuating market interest rate. Because you have not made payment of the interest charges in full, the unpaid portion of interest is then added on to your remaining principal amount outstanding in your mortgage loan. Your outstanding balance will therefor increase rather than decrease.
Depending on Read more…
A Little Problem With 15 Year & 30 Year Mortgage Rates
If only the mainstream advocates that every home owner should learn how to use fast remortgages to turn their home equity into cash. And using that cash to build up their own personal cash thereafter. More people can enjoy the fruits of their hard work currently used to pay off a mortgage little by little.
Instead, what has been promoted in the mainstream is to take up 15-year or 30-year mortgages with fixed rates as the safest form of mortgage loan. The only safe thing here is that interest rates will remain the same. People have different risk profiles, and most people have a very low tolerant for risk.
For those who are risk adverse, you should really stick with 15-year or 30-year mortgages with fixed rates.
For those that can handle a little more risk, let me show you more of the options available to you.
The traditional fixed rate mortgage loan is probably Read more…
