D - I'm 27 yo, married, and we have recently bought our first house which we will sell in 3 years. What should we do with extra money - pay towards morgage, pay towards credit card debt or put in emergency fund.
SO - If you were a 45 yo and knew that you would live in this house till the end, I'd recommend paying towards morgage. But since you are only 27 and as you said, you plan on selling this house in 3 years - you should pay your credit card debt. BTW, what the APR do you have on your credit cards?
D - oh... it's AmeriDebt, I've consolidated my credit cards
SO - so you have a bad credit in your history?
D - yes, I do. I didn't work for 4 months and was hit by bills so I had to use credit cards to survive.
SO - what is your FICO score?
D - last time I checked 6 months ago it was sligtly less than 700.
SO - your husband's?
D - lower 700.
SO - What APR do you have on your morgage?
D - 3.95%
SO - Do you have NEGATIVE AMORTIZATION morgage loan?
D - I'm not sure... It's 3/1/1 interest only ARM.
SO - so, it will be constant for 3 years and then it will change. Are you aware that with negative amortization morgage loan, because you pay less than you should, your loan amount increases every month, not decreases?
D - um..... yeah, they told us something like that
SO - okay... as long as you know it...
сижу и думаю: вот семья, которая имеет проблемы с выплачиванием кредитов (консолидация долга по кредитным карточкам хороший тому показатель) покупает дом, который они заранее планируют продать через 3 года. Финансируют дом с займом, по которому они с первого-же пэймента будут должны больше, чем занимали (negative amortization). Единственное, что движет этими людьми - надежда на то, что цены будут продолжать расти, и через 3 года они смогут продать дом с прибылью (с учётом минус 6% за транзакцию), которая покроет
долг, набежавший из-за negative amortization.
Гринспэн и так и сак намекает, что он будет периодически поднимать процентную ставку. Что подобным людям даёт уверенности в том, что цены будут продолжать рости?
Про negative amortization morgage loan можно прочитать здесь :
http://www.bankrate.com/brm/news/DrDon/ ... odtype=mtg
http://www.century21.com/learn/content. ... ent_id=336
http://www.eloan.com/s/show/negam?sid=- ... ump&mcode=
eloan wrote:Negative Amortization
What is negative amortization?
Negative amortization is used to describe loans that have payment adjustment caps instead of interest rate adjustment caps. Most loans are designed to amortize, i.e., reduce, to a zero balance by the end of their loan term. Therefore each payment contains a portion of interest (primarily interest at the beginning) and a portion of principal. These loans are referred to as "no negs" or not having the possibility for negative amortization. Generally, E-LOAN recommends these loans over negative amortization products because of the risks of having the loan principal increase instead of decreasing.
How does negative amortization occur?
Negative amortization loans calculate two interest rates. The first is called the payment rate the second is the actual interest rate. The payment rate is typically capped at 7.5% of the previous payment. The true interest rate is calculated as simply the index plus the margin without periodic caps. Borrowers are given a choice of which rate to pay. Thus advertisers of negative amortization loans often refer to these loans as "payment option" loans. While it is true that the borrower has a payment option, which offers flexibility, the borrower will also be subject to the true interest rate.
Risk Considerations
The risk associated with a negative amortization product is that the interest rate calculation does not have a periodic cap and therefore can increase to the lifetime cap at any time. This is fundamentally different from "no negs" which always have periodic caps. Therefore, in terms of wealth generation, negative amortization loans are more risky and often not as good an investment as "no negs."
When to Consider a Negative Amortization Product
Negative amortization loans can be useful if the borrower is primarily concerned with cash flow rather than equity. If the borrower only pays the payment rate, the overall mortgage payment over time can be relatively low. This type of product can be a temporary strategy if income is expected to be reduced for a period of time, or if the hold period is short term to minimize cash outflow.
Nevertheless, one of the main reasons for purchasing a home is to build equity and generate greater wealth. If a borrower is primarily concerned with cash flow, a better strategy could be to simply rent rather than own.
Про negative amortization morgage loan я слышал и раньше, но его рекоммендовалось брать на короткий период времени, когда, например, теряешь работу. Идея такого займа - ты _сейчас_ не можешь платить полную сумму и временно платишь меньше, а затем, когда появились деньги - выплачиваешь набежавшую сверху сумму. Но чтобы брать такой morgage на продолжительный период времени - по-моему очень глупо. Ну, разве что ты веришь в то что цены на дома будут продолжать расти, и они действительно выростут.
