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Figures have been rounded to nearest dollar
Purchase Price / Property Value Loan Amount Payment Rate Payment Rate Amortization Time Time to Recast Negative Amortization cap Rate After Recast (no market change) Max Rate Adjustment Up Max Rate Adjustment Down
$600,000 $400,000 2.25% 40 yrs 5 yrs 115% 7.50% 5.00% 1.25%
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Created by David Mollo 2008 For more real estate calculators go to www.davesrealcalcs.com
Negative Amortization (NegAm) / Pick-a-Pay / Option ARM
Underlying Rate Minimum Initial Payment per Month Amount Owed per Month / Interest Only* Initial Neg Am per Month* Amount of Neg Am Allowed Cause of Recast Final Loan Balance at Recast True Time Until Recast Recast Rate Cap Recast Rate Floor 7.50% $1,265 $2,632 $1,368 $60,000 CAP 460,000 3.55 yrs 12.50% 6.25%
Payment After Recast
Median Scenario* Worst Case Scenario* Best Case Scenario* $3,077 $4,844 $2,671
Difference in Payment
$1,812 $3,579 $1,407
*Does not account for variance of rate prior to recast
Loan Balance at Neg Am Cap Loan Balance at Recast Period Remaining Loan Life
$460,000 $489,602 36.45 yrs