What are the pros and cons of a negative amortization?
813024
i heared a negative amorization could get you more money to borrow or lower monthly payments. kind of like an option arm. some people do it so you pay the lowest payments each month, lower than any interest only term, but it could add to your principle. for example, you pay the lowest payments, but in 12 months they add $1,000 to your principle. its good for low payments if you just want low payments for interest only, but it can qualify alot of people BUT after the interest only term, your forced to refinance and you may not be able to make the new payments, so make sure it will help in your situation with the mortagage company. its not for everyone but alot of people can do it
277668
If you are that bad, yes.  Otherwise you may be headed to bancruptcy.  If that happens, you will lose assets anyway.
615851
It can't hurt you as long as you know going in that the rate will change after the introductory period and you have the option available to move it back to the LOC later. \n\nI did it once with a balloon payment I had on a note and I just paid as much as I could on it during the intro period and then when it converted over I owed less than $1,000 and had it paid off within a couple of months.
677179
If you managed to buy it in cash, just go for it. You can even ask for discount for full payment. Of course it is risky, make an appointment first and it's not too far to have a police supervision or a lawyer during that transaction. For me, if I can avoid myself from debt, I would be happy. That's a personal success.
255670
A reverse exchange is when you close your replacement property before your relinquished property. \n\nThe advantage is that you're able to secure the property before your sale closes. This minimizes the risk of failing to identify replacement property within 45 days.\n\nThe downside is that reverse exchanges are much more expensive than a normal delayed exchange. On average reverses run between $6,000 & $10,000, as compared to our $500 fee for a delayed exchange.\n\nIf you have the ability to sell your property first then close on the purchase that will certainly save you alot of money, however if there's a large gain involved it may make sense for you to do a reverse. The best thing to do from here is consult with your CPA to find out what is your best option. \n\nIf you have further questions you're welcome to email me at alex@havenexchange.com or call toll free (866)794-1031, and I'll be happy to help.\n\nSincerely,\n\nAlex Goldsmith - Account Manager\nHaven Exchange
332705
The down payment is a key factor. Usually the 2nd (line of credit) is at a higher rate and shorter term. Making the payments high.  The more down you can provide the lower your monthly payment will be. There are also many options like Interest Only and even some Negetive Amortized loans which have considerably lower payments than the conventional 30yr fixed paymetns. It ultimatly depends on what your long term goals are? \nBest thing I can recommend talk to a loan specialist at your local bank.
498026
Pros\n-longer to pay it off\n-monthly payment is lower so it might be more managable for lower incomes\n\nCons\n-interest rate is higher than for shorter duration loans\n-paying more interest over time (this is a big negative)
118978
If you are buying for the first time it is hard to avoid a little negative feeling when you first get straddled with a mortgage.  It's the largest acquisition most folks will make in their life.  There is an adjustment period for most folks as they learn to live within a budget and get use to the larger out lay of monthly revenue for housing.  But overtime as the market shifts, tax benefits are realized annually, pay increases and loans get refinanced; life and mortgage become easier to manage as long as prudence is exercised in use of equity.\n\nGive it time and take a long term approach when it comes to  your personal residence.  If you planned for the purchase buyer's remorse may be less if you seek the proper home for oyu and your family.
106386
you can use an amorization chart to recalculate or check out any refinancing website and use their mortgage calculator...remember your tax shelter will be affected,too
1155603
The advantage is in knowing that you have equity in your home already....Don't let the seller know what it got appriased at - ok - - -Now - if you needed help with the closing cost, that is another matter, the seller could help with closing cost, and you would make a offer to the seller to adjust the purchase price....I do not recommend this - but it has been done in the past, expecially if you already have your financing approved.  The advantages is down the road, if you wanted to do a line of credit - you have the equity of 11,000 to use - for newer carpet - etc....  I would just let it build since home markets are on the rise in different areas, and on the decline in others.  Good Luck.
393433
Lower rate, but sometimes they add on "points" (look it up)or it could be for a 3 or 5 year ARM (adjustible rate mortgage) that once it's up you pay whatever the current rate is. Plus, you probably don't want to refinance unless you can get about a point or more taken off (to cover new closing costs)
608479
As a branch manager for a direct lender/brokerage, I would stay away from the 2/28 at this time.  We may have more rate hikes, hindering you from refinancing in 2 years due to whats called payment shock!  It is a risky loan at this time as nobody knows if rates will decrease. You will be fine to refinance in 2 years; at the going rate at that time.. The 2 year fixed is a way for that loan officer to earn income off of you two times.  It may not be the best program for you after seeing your hesitance.  Email me at ryan.wood@truelend.com for other options.
318872
It isn't Bad. It is bad for people who wanted to borrow money - for example the government or home buyers. But it is good for people looking to invest money as it indicates that can get a higher returns. As for reading more into it - it indicates demand and hence either good (boom) or bad (inflation) - usually both in the end
949086
The interest rate is horrible, but keep building the score so if and when you borrow in the future the rate is more reasonable, like in the single digits. You have to repair the score somehow so its a good start.
496828
google search "amortize payments algorithm". I found both the monthly and semi-annual compound algorithms on this huge text file. Good luck on finding it.
1005792
I did.  You can usually get a much better (and fixed rather than variable) interest rate that way.  I am not sure what the cons are, I only know the pros.
1101100
It's actually negative.\n\nThe government said that borrowing on credit cards, auto loans and other forms of consumer debt rose by 3 percent in 2005, down from rates above 4 percent in the previous three years and a 7.7 percent surge in 2001. It was the smallest increase since a 1 percent rise in 1992.\n\nConsumer borrowing ended the year on an up note, rising at an annual rate of 1.9 percent in December following a weak 0.3 percent rate of increase in November and a plunge of 4 percent in October, a decline that reflected a big drop in auto sales.