This is the limit of negative amortization that is allowed on an adjustable rate mortgage. The cap is expressed as a percentage of the total amount of the loan.
Related information about negative amortization cap:
- Negative Amortization Cap - Financial Dictionary - The Free Dictionary
The maximum amount of negative amortization permitted on an ARM, usually expressed as a percentage of the original loan amount (e.g.,110%).
- Negative Amortization - Financial Dictionary - The Free Dictionary
Negative Amortization Cap · Negative Amortizing Mortgage · Payment Adjustment Cap · payment cap · Payment Shock · Recast Clause · Scheduled Mortgage ...
- What is negative amortization cap? definition and meaning
Definition of negative amortization cap: This is the limit of negative amortization that is allowed on an adjustable rate mortgage. The cap is expressed as a ...
- What is the negative amortization cap for mortgage loans?
The negative amortization cap for a mortgage loan is the limit your loan balance can go up with the borrower making minimum monthly payment.
- Option ARM Loans - Home Buying and Selling - About.com
Negative Amortization Cap If you make the minimum monthly payment every month, the difference between the full interest payment and the payment you made ...
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Negative Amortization Cap, in Percent (e.g., 110 - if no cap, leave blank). Interest Rate Information. Current Value of ARM Interest Rate Index ( e.g. 1.54 ) ...
- Assume that negative amortization on an ARM is - Ask the Mortgage ...
A negative amortization cap overrides a payment adjustment cap. The negative amortization cap would be reached only if interest rates increase persistently ...
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