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Negative Amortization

When adjustable rate mortgage payments are not sufficient to pay the monthly principal and interest, the deficient amount is added to the original mortgage which causes the outstanding principal balance to increase. Therefore, the amortization is negative instead of positive.

See also:
  • Negative Amortization
  • Nehemiah
  • No Doc Loan
  • Non Conforming Loans
  • Note
  • Notice of Default

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