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Interest Shortfall

 
Banking Dictionary: Interest Shortfall

Earned interest unpaid after loan payments have been made. This shortfall occurs most frequently in adjustable-rate mortgages with an interest-rate cap or mortgage loans with a low monthly payment option, resulting in Negative Amortization.

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Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more