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

To: mishedlo who wrote (38051)	8/7/2005 4:24:49 PM
From: loantech	Respond to of 110194

I am not sure mish but when I did a close look at the neg am loans when they were though Home Savings which I think was bought out by WA MU you could go to 140% Neg. And I think that was in 5-7 years. So depending on the payment plan you pick you can be quite a ways under paying the principal. I said 125% but it is shooting from the lip. NOT VERIFIED! <g> If your payment is let's say 2.5% under the prevailing rates as we are getting closer to 5.75% on a fixed 30 year or 1 year ARM if the neg payment allows for let's say 3.00% you lose 2.75% a year. On 300K that would be about 8% neg in the first 3 years. So thanks for calling me on that. My numbers were off. And still may be. <g>