Negative Amortization 
Negative amortization loans are some of the most misunderstood loans available in the market place. The negative stigma (no pun intended) comes from a lack of education to the consumer by mortgage professionals. This loan type is not for everybody and requires a very sophisticated borrower and the right situation.
In a regularly amortized mortgage payment, part of the payment goes toward a portion of the principal and part goes toward interest payment. In a loan that involves the potential for negative amortization, you have several payment options each month. You can make a low introductory rate payment, an interest-only payment, or a fully amortized payment.
This type of loan works very well for borrowers with a seasonal income or income that fluctuates. Certified Public Accountants, investment advisers, and sales people Read the rest of this entry »
