Interest Rate hikes and foreclosures

Becareful of the Option Payments. Opntion Payments include the Deferred Interest also known as Negative Amortization.This means the minimum payment DOES NOT COVER THE minimum interest. The difference is added to the principal. For example, if have a loan for $100,000 at 6% you have the following options to pay Option 1: Negative at (1%), monthly payment $83.33 Option 2:. Interest only monthly payment is $500.00. Option 3: 30 Years Interest & Principal $599.55;so if you have pay Option 1, then you are underpaying the by 500-83.33= 416.67.This cannot continue forever. Depending on your loan you can only do this for 12 months or until a certain amount is deferred. When that happens the Lender will force you to pay up.