If the economy is moving along at a good pace, wages and home prices are rising, and borrowers are in a particular investment or financial situation where they can make these short-term loans work for them, an argument can be made for negative amortization financing. The key is making sure you have flexibility to pay more into these interest-heavy loans or the freedom to refinance at a later date. Also, don't forget the fees — these loan options may cost more in the application process as well.