negative amortization


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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You need to make sure that you know how to handle any negative amortization that may be coming down the line.

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The negative amortization of the loan was not well received by the homeowner who thought they were doing something positive by making payments.

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The goal of any borrower is to not pay less than their scheduled payment as otherwise negative amortization will cause their balance to increase.

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graduated payment payment option ARM minimum payment