Home Equity Loans with Negative Amortization 1st Mortgages

Should I Refinance my Negative Amortization First Mortgage or Get a Home Equity Loan Behind it?

Home Equity Loans with Negative Amortization 1st Mortgages are difficult to find, but Nationwide Mortgage Loans offers refinance options with second mortgages that are allowed with payment option ARM's. Payment option ARMs (adjustable rate mortgages), also known as option ARMs, deferred-interest loans, negative amortization loans, neg-am loans and other terms, became popular in recent years as housing prices skyrocketed. These loans allow borrowers to qualify for more expensive houses and are, in many cases, the only way some borrowers can afford to buy homes. Unfortunately qualifying for a home equity loan that subordinates to a negative amortization first mortgage can be next to impossible.

Preferred Loan Type Select ---------------> Mortgage Refinance Cash Out Refinance Home Equity New Home Purchase Property Type Select One-----------> Single-Family Detached Condominium Cooperative Multi-Family Dwelling Modular Mobile Home Manufactured Home Property Value Select One-----------> 1st Time Buyer 75,000 - 80,000 80,000 - 85,000 85,000 - 90,000 90,000 - 95,000 95,000 - 100,000 100,000 - 105,000 105,000 - 110,000 110,000 - 115,000 115,000 - 120,000 120,000 - 125,000 125,000 - 130,000 130,000 - 135,000 135,000 - 140,000 140,000 - 145,000 145,000 - 150,000 150,000 - 155,000 155,000 - 160,000 160,000 - 165,000 165,000 - 170,000 170,000 - 175,000 175,000 - 180,000 180,000 - 185,000 185,000 - 190,000 190,000 - 195,000 195,000 - 200,000 200,000 - 205,000 205,000 - 210,000 210,000 - 215,000 215,000 - 220,000 220,000 - 225,000 225,000 - 230,000 230,000 - 235,000 235,000 - 240,000 240,000 - 245,000 245,000 - 250,000 250,000 - 255,000 255,000 - 260,000 260,000 - 265,000 265,000 - 270,000 270,000 - 275,000 275,000 - 280,000 280,000 - 285,000 285,000 - 290,000 290,000 - 295,000 295,000 - 300,000 300,000 - 305,000 305,000 - 310,000 310,000 - 315,000 315,000 - 320,000 320,000 - 325,000 325,000 - 330,000 330,000 - 335,000 335,000 - 340,000 340,000 - 345,000 345,000 - 350,000 350,000 - 355,000 355,000 - 360,000 360,000 - 365,000 365,000 - 370,000 370,000 - 375,000 375,000 - 380,000 380,000 - 385,000 385,000 - 390,000 390,000 - 395,000 395,000 - 400,000 400,000 - 405,000 405,000 - 410,000 410,000 - 415,000 415,000 - 420,000 420,000 - 425,000 425,000 - 430,000 430,000 - 435,000 435,000 - 440,000 440,000 - 445,000 445,000 - 450,000 450,000 - 455,000 455,000 - 460,000 460,000 - 465,000 465,000 - 470,000 470,000 - 475,000 475,000 - 480,000 480,000 - 485,000 485,000 - 490,000 490,000 - 495,000 495,000 - 500,000 500,000 - 505,000 505,000 - 510,000 510,000 - 515,000 515,000 - 520,000 520,000 - 525,000 525,000 - 530,000 530,000 - 535,000 535,000 - 540,000 540,000 - 545,000 545,000 - 550,000 550,000 - 555,000 555,000 - 560,000 560,000 - 565,000 565,000 - 570,000 570,000 - 575,000 575,000 - 580,000 580,000 - 585,000 585,000 - 590,000 590,000 - 595,000 595,000 - 600,000 600,000 - 605,000 605,000 - 610,000 610,000 - 615,000 615,000 - 620,000 620,000 - 625,000 625,000 - 630,000 630,000 - 635,000 635,000 - 640,000 640,000 - 645,000 645,000 - 650,000 650,000 - 655,000 655,000 - 660,000 660,000 - 665,000 665,000 - 670,000 670,000 - 675,000 675,000 - 680,000 680,000 - 685,000 685,000 - 690,000 690,000 - 695,000 695,000 - 700,000 700,000 - 705,000 705,000 - 710,000 710,000 - 715,000 715,000 - 720,000 720,000 - 725,000 725,000 - 730,000 730,000 - 735,000 735,000 - 740,000 740,000 - 745,000 745,000 - 750,000 750,000 - 755,000 755,000 - 760,000 760,000 - 765,000 765,000 - 770,000 770,000 - 775,000 775,000 - 780,000 780,000 - 785,000 785,000 - 790,000 790,000 - 795,000 795,000 - 800,000 Over 800,000 Credit Rating Select ---------------> Excellent Good Fair Poor

Negative amortization loan have four payment options, including one that doesn't cover the interest charges. The shortfall is then tacked onto the balance along with the unpaid principal, which is what causes the loan balance to increase--negative amortization. If you only make the minimum payment, you could potentially end up owing more than what your house is worth. In addition to that, it is very difficult to get a second mortgage behind neg am loans because lending underwriters calculate the 1st mortgage balance by gross up balance 115% or 125% depending upon the mortgage note. Even if you can get a second mortgage, neg-am can restrict your secondary loan options because very few home equity lenders will go behind a negative amortization 1st.

With the increasing concern over the real estate bubble and rising interest rates, many people are wondering, "should I refinance my negative amortization mortgage?" About one in four mortgages will have their interest rates reset in 2007, so depending upon the credit score you may need to refinance your negative amortization 1st and then get a new home equity loan to refinance debt.

"If you're already planning to refinance and you believe a value-drop is coming, this could be the push you need to get it done. If the real estate values come down, you might be in a position in the future where you can't refinance. If your home is worth a lot, you might have more options now than in the future," says Eric Tyson, author of "Mind Over Money: Your Path to Wealth and Happiness".

If you're shopping for a purchase loan, you should consider whether you may need a second mortgage before you get a payment option mortgage with a 1% start rate. Ask yourself, "Do I plan to refinance 1st mortgage or get a home equity loan for cash out anytime in the near future?" If the answer is "yes", then you should consider a fixed-rate or adjustable rate amortizing loan instead. This will help you avoid the problems of getting a 100% home equity loan behind a negative amortization 1st mortgage, getting a cash out second mortgage, getting another type of equity loan or refinancing your first mortgage.

Additional Home Equity Loans to Consider:
Please view the popular loan products below. If you need more information, Please select the loan that meets your financing needs most. To get more details click the relevant link below that meets your needs and for further research and advice.
Second Mortgages to 125%	Home Equity Loan Consolidation	Debt Loan Refinance
Debt Consolidation 2nd's	Fixed Second Mortgage to 100%	Bad Credit Equity Loan
*Home equity loan approvals are subject to application submission to Nationwide Mortgage Loan Company. The standard conditions for approvals are underwriting qualifications such as: verification of income, employment, assets and other information like obtaining an acceptable property.