negative amortization Definition

negative amortization

Definition

A gradual increase in mortgage debt that occurs when the monthly payment is insufficient to cover the interest due, and the balance owed keeps increasing (at least in the first few years).

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negative amortization is ...
... part of the Lending & Credit and Real Estate subjects.

Related Terms

graduated payment - More

amortization - More

negative amortization appears in the definitions of these other terms on BusinessDictionary.com

partially amortizing loan