The owners have the option to pay the fees, why are negative amortization loans, also known as “payment” loans and option ARMS. Cost of funds index (COFI), cost Index (COSI) and the monthly Treasury average (MTA or mat) are examples of the Alt-A loans write-offs. The flexibility of these loans, not the accessibility of a home purchase loan or when you cash in your home equity to refinance a mortgage product.
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