FLORIDA KNOWLEDGE CENTER

Negative amortization mortgage loans are marketed under several different names and come in four basic varieties:

The negative amortization mortgages may increase the principal balance on the loan if the monthly interest payments are less than the interest accrued for the month. These mortgages usually have a recast feature when the princpal balance reaches a specific percentage over original principal balance.

Negative amortization can only arise on ARMs with one or more of the following features:
1) The initial payment does not cover the interest due.
2) The interest rate adjusts more frequently than the monthly payment.

Negative amortization, also known as NegAm, is an amortization method in which the borrower pays back less than the full amount of interest owed to the lender each month.

30 Year Fixed Rate Option Loan - A True Fixed Rate Mortgage with 4 different payment options each month. Minimum payment option usually only available for the first 5 or 10 years or until the loan balance exceeds the negative amortization cap.
also known as a 30 Year Fixed Rate Cash Flow Loan

Reverse Mortgage - a loan which allows retired homeowners to receive substantial cash out, in the for of an annuity, lump sum of cash, or combination of the two, without requiring the retired homeowners to make any monthly payments. Not offered by all mortgage companies, and limited to smaller loan amounts and specific property types.

Option ARM - Adjustable Rate Mortgage w/ 4 Payment Options and a rate which adjusts each month. Very popular and common loan in certain states, including California, New York, Florida and other high cost areas due to extremely low (Typically 1%) mortgage minimum payment.

Fixed Rate Option ARM - Adjustable Rate Mortgage w/ 4 Payment Options and a Fixed Rate "start", or introductory period of 3 years or 5 years, up to 7 or 10 years where the rate, payment, or both remain fixed, after which time the rate become variable.
also known as a "Hybrid" Option ARM

Florida Mortgage Rates

Getting the right Florida Mortgage Program and Rate is probably the most important part of choosing your Florida Mortgage Loan. Having the best Florida Mortgage Rates will save you thousands of dollars through out the course of the mortgage Loan.

At American Mortgage Rates, we strive on finding the best Florida Mortgage Program and Rate possible for you, the client! Our Licensed Florida mortgage brokers constantly educate them selves on the latest and best Florida mortgage programs to better serve you. There are many different loan programs to choose from which all have different Florida Mortgage Program and Rate, so by staying educated in this area allows us to find you the best Florida Mortgage Program and Rate possible.

Fortunately, due to our production in the mortgage industry we have been able to meet certain standards with our lenders and banks. These standards allow us to pass additional savings to you the client because of our preferred pricing on our Florida Mortgage Program and Rate. Your Florida mortgage broker should go over all the possible Florida Mortgage Program and Rate when choosing your Florida Mortgage.

When inquiring about a Florida Mortgage to your Florida Mortgage broker, be sure to ask about what kind of pre-payment penalty that is associated with that particular Florida Mortgage Program and Rate, some Florida Mortgage Program and Rate have no pre-payment penalty where some have very high penalties. This is something your Florida Mortgage broker should go over with you when choosing the best Florida Mortgage Program and Rate for you.

Feel free to call or inquire over the web about today's Florida Mortgage Program and Rate, we will be happy to quote today's best Florida Mortgage Program and Rate that we have available to us.

Since we work with many Lenders we get the best Florida Mortgage Program and Rate available where when dealing with one particular bank they are limited to there own loan products where they might not have the best available Florida Mortgage Program and Rate that day, when banks compete with each you the savvy mortgage shopper could take advantage of this by working with a real good Florida Mortgage Broker who is up on the Florida Mortgage Program and Rate.

A fixed rate mortgage is a mortgage that has a fixed interest rate for the term of the fixed rate mortgage term. This means your principal and interest payment will not change for the entire term of the loan until it is paid off. A 30 year fixed rate mortgage means that you mortgage is fixed for 30 years. A 15 year fixed means the same that your payment will not change for 15 years and then your mortgage will be paid off.

An Adjustable rate mortgage is a mortgage that has an adjustable interest rate for the term of the mortgage. This means your principal and interest payment will change for the entire term of the loan until it is paid off. Adjustable mortgages can adjust monthly, yearly, or sometimes mat be fixed for 2, 3, 5, 7 and 10 years and then start to adjust more often.

For more information about our many loan programs and Florida Mortgage Program and Rate please call us at 954-475-8787 or fill out our short mortgage form.

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