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.
| 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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