Negative Amortization Loan programs, which were once available to only the wealthiest of a banks customers due to their ability to allow borrowers to defer interest, are now being marketed to more "conventional" self employed borrowers, business owners, and beneficiaries of passive income, investment income, rental income or even substantial bonus or commission income.
When they were originally introduced, negative amortization loan programs were marketed under names such as "deferred interest mortgage" or "payment cap ARM", which very accurately reflect the nature of these "neg-am" mortgages, which are very powerful tools intended for homeowners with a certain degree of financial sophistication. While reverse mortgages are one type of negative amortization loan, the sort which have received the most press and the widest number of names are the so called "pay option" negative amortization loan program, which allows borrowers to choose each month whether or not they will defer or pay down the interest due on their mortgage.
As negative amortization loans have entered the mainstream in recent years, they have shed their "technical" sounding names and have been marketed to consumers under a nearly countless number of different monikers.
Here is a list of some of the most popular names for negative amortization loan programs, compiled by mortgage professionals from across the industry, although no opinions are expressed or implied about these loans or the companies who market them. This is just a list of names for nagative amortization loan programs:The negative amortization loan may increase your principal balance when your monthly payment is below the interest accrued on your loan that month.
Pay Advantage Plus
Secure Advantage
Deferred Interest Mortgage
Minimum Payment Loan
Pay Option
Pay Option ARM
Flex 5
Secure Advantage
Payment Cap ARM
5 Year Fixed Pay Option
30 Year Fixed Rate Option ARM
Pick a Pay
Pick a Payment
Smart Choice
Smart 30 Mortgage
1 Month MTA
1 Month ARM
Self Employed Cash Flow Loan
Investor ARM
12 MAT Mortgage
Lower Than Interest Only
MTA Option ARM
Fixed Rate Option ARM
Fixed Pay Option
Power Fixed 30
COSI ARM
One Percent Mortgage
Payment Advantage Mortgage
Deferred Interest Home Loan
OptPay ARM
1% Loan
1-1 Buydown (no negative amortization if buy down account is fully funded)
Despite recent changes in the secondary market regarding negative amortization loans, there are still excellent negative amortization programs available for consumers.
Deferred Interest Loan.
These pay option arms can be very good for some borrowers (especially those who are self employed with a flucuating income). This can be a very volatile product so any borrower choosing to accept this loan should be in tune with their finances at all times.
Option Payment
Scheduled Negative Amortization Loan
3-2-1 Buydown (no negative amortization if buy down account is fully funded)
Reverse Mortgage
Monthly Adjustable Rate Mortgage
FlexPay
2-1 Buydown (no negative amortization if buy down account is fully funded)
Flexible Payment Loan
Negative Equity Loan
5 Year Cashflow Loan
All NegAM home loans eventually require full repayment of principal and interest according to the original term of the mortgage and note signed by the borrower.
Investor Loan
GPM
Fixed Negative Amortization Loan
Graduated Payment Mortgage
Managed Mortgage Amortization Loan
Fixed Rate Pick a Pay
Equity Builder
Fixed Pick a Pay
Pick Your Payment
Minimum Payment Option
Minimum Payment Option ARM
Neg-Am Loan
0.25% Option ARM
Interest Only (misnomer)
Quicken Smart Loan
Negative Mortgage
1% Mortgage
Cash Flow Advantage
Cash Flow Construction Loan
Fixed Option ARM
Power Option ARM
Flex Option
Flex Pay Option
Negative Amortization Mortgage
NegAm Home Loan
Cash Flow ARM
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subject to change without notice. All loans are subject to credit approval.
Equal Housing Opportunity.