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Showing posts with label mortgage refinance. Show all posts
Showing posts with label mortgage refinance. Show all posts
Monday, April 9, 2012
Deferred Interest Mortgages | Mortgage Loan
How Deferred Interest Mortgages is Good Home Financing
Negative amortization, or "deferred interest," describes loans that have payment adjustment caps in addition to interest rate adjustment caps. Negative amortization loans calculate two interest rates. The first is called the payment rate the second is the actual interest rate. The true interest rate is calculated as simply the index plus the margin without periodic caps.
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