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Bridge Mortgages provides homeowners a complete suite of home mortgage programs, including the 1% option ARM Loan. All of our purchase and refinance loans were created to help you get the best interest rate for home financing available at the time of your loan inquiry. By always keeping a competitive edge with mortgage market, we can help you lower your monthly payments and get access to cash by means of home equity financing or 1st mortgage refinancing.
- Payment option loans to $2,000,000
- 1% Payment choice with Negative Amortization
- Home Purchase loans up to $3,000,000
- Stated Income loans up to $1,500,000
- 80-20 No Money Down Purchase
- 40 year Amortization with Low Payments
- 100% Fixed Rate Refinancing
- Second Home Refinancing
- Interest Only Mortgage Payments
By Keith Hinkley
What are Negative Amortization Loans?
Negative amortization mortgages have payment options that allow reduced monthly payments on a loan are insufficient to pay the interest accruing on the principal. The additional interest cost is added to the loan balance. The increased loan balance results in higher interest expense and an increasing loan balance. Thus, the term “negative amortization” applies to the principal mortgage to cover the insufficient funds to amortize the loan balance. The homeowner is, in effect, borrowing more money each month to cover the interest on the mortgage. The monthly payment is a deferred interest payment. Until the loan starts to amortize, there isn’t a principal part of the monthly payment. Most people get these loans to aid current cash flow, but does not help to pay off the mortgage. This can be an effective form of finance for investing or a risky choice for someone with a misunderstanding or no plan. To continue reading loan article
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