Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (37390)	7/31/2005 3:01:28 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

Russ, I think you are talking about the interest rate adjustments and the annual cap of that adjustment. This reset is on going now. I am talking about PAYMENT cap regardless of what interest rate is. Most are capped at 7.5%. In other words, if your payment is $100 today, it cannot be more than $107.5 next year, regardless of how much negative amortization you are building up. That comes to an end when the "reset" is triggered, either by time or by hitting the max amount of neg amort allowed. The fitch report seems to point to 5 years as the most common. The could be a good place to look also: novastarmortgage.com NFI is a subprime lender with a lot of details in their reports.