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Negative amortization is what happens when the buyer makes less of a payment than what the interest charged is. en.wikipedia.org/wiki/Negative_amortization is a great website to read.

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12y ago

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Related Questions

What is the meaning of amortization?

To place a mortgage on something.


What is meant with amortization schedule mortgage?

Breakdown of the amortization in to Interest and Principal is called Amortization schedule. This is useful customers to know how much interest is stuffed in to an amortization. These days EMI is most popular way of amortization, where customer pays same amount throughout amortization period. With Amortization Schedule customer can know how much interest he is paying in every amortization. Find more info at www.investorwords.com/202/amortization_schedule.html


Which type of mortgage loan does not have the possibility of negative amortization?

lender buy back


Does negative amortization help loan payments?

Yes, negative amortization helps with loan payments, and they are very helpful when it comes to giving out loans, unless you have a bad credit score, which in that case, don't even try getting a loan anywhere.


What is the meaning of loan amortization?

Amortization is A method for repaying a loan in equal installments. Part of each payment goes toward interest and any remainder is used to reduce the principal of the loan


What is a negative amortization loan?

In finance, negative amortization, also known as NegAmMort, is an amortization method in which the borrower pays back less than the full amount of interest owed to the lender each month. The shorted amount is then added to the total amount owed to the lender. Such a practice would have to be agreed upon before shorting the payment so as to avoid default on payment. Also known as deferred interest or Graduated Payment Mortgage (GPM).


What is principal amortization?

It is the amortization of the principal of the loan.


Could you inform me about amortization schedule?

You know that you will have to pay back your mortgage eventually. The amortization schedule will specify how much you will have to pay and for how long, until you own the property outright, free of debt.


What is mortgage amortization?

If your a homeowner you should try to know how the amortization of your home mortgages work. Amortization affects how quickly a mortgage value is paid down also how fast you can build equity into the house. This allows a homeowner to understand how each monthly mortgage payment can effect the homeowner.


How can an amortization chart be produced?

An amortization chart is created from an amortization table or amortization schedule to show visually how the balance, cumulative interest, and principal change over the time.


What is the meaning of amortisation of translation reserve?

Amortization or amortisation is the process of decreasing or accounting for an amount over a period of time


Is undulating a negative word?

No, there is no inherent negative connotation (implied meaning) that I know of. It can be used negatively, like most words, but I don't think that the word itself is negative.