negative amortization loan calculator

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Figures have been rounded to nearest dollar

Purchase Price / Property Value               $600,000

Loan Amount                                   $400,000

Payment Rate                                    2.25%

Payment Rate Amortization Time                      40 yrs

Time to Recast                                       5 yrs

Negative Amortization cap                        115%

Rate After Recast (no market change)            7.50%

Max Rate Adjustment Up                          5.00%

Max Rate Adjustment Down                        1.25%

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Created by David Mollo 2008
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 Negative Amortization (NegAm) / Pick-a-Pay / Option
Underlying Rate                                 7.50%
Minimum Initial Payment per Month              $1,265
Amount Owed per Month / Interest Only*         $2,632
Initial Neg Am per Month*                      $1,368
Amount of Neg Am Allowed                       $60,000

Cause of Recast                                  CAP
Final Loan Balance at Recast                   460,000
True Time Until Recast                            3.55 yrs

Recast Rate Cap                                 12.50%
Recast Rate Floor                                6.25%

   Payment After Recast                                      Difference in Payment
Median Scenario*                                $3,077         $1,812
Worst Case Scenario*                            $4,844         $3,579
Best Case Scenario*                             $2,671         $1,407

 *Does not account for variance of rate prior to recast

Loan Balance at Neg Am Cap                    $460,000
Loan Balance at Recast Period                 $489,602
Remaining Loan Life                              36.45 yrs

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