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What is a negative amortization loan?

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βˆ™ 2006-07-19 01:25:30

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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).

2006-07-19 01:25:30
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Related Questions

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.


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

lender buy back


What is principal amortization?

It is the amortization of the principal of the loan.


What is an amortization loan table?

An amortization loan table is a chart that displays each periodic payment on an amortizing loan, and each number is calculated using an amortization calculator.


Is an amortization loan worth it?

Amortization is just another name for the monthly payments you will be making. It is not a type of loan.


What would be the best website to find an amortization loan calculator?

The best website to go to for an amortization loan calculator would be bankrate.com. They have an excellent amortization loan calculator that is simple and easy to use.


What is a car loan amortization?

Basically, Car Loan Amortization is the balance of your auto loan. It is the process of following a plan or schedule of your loans for your automobile.


What exactly does amortization loan do?

An amortizing loan is a loan where the principal of the loan is paid down over the life of the loan, according to some amortization schedule, typically through equal payments.


What is an amortization schedule for a loan?

An amortization schedule for a loan is basically the date that you have to place the payment of a repayment of your loan. If you miss this schedule, then fees might apply.


Where can I find a car loan amortization calculator?

You can find a car loan amortization calculator to estimate your monthly loan at Bankrate. This website can be accessed at www.bankrate.com.


Which websites offer auto loan amortization calculators?

You can find a good auto loan amortization calculator at www.bankrate.com/Calculators.


Where can I find a good amortization loan calculator?

You can find a good amortization loan calculator online. A good place to try is on any bank's official web page. Here, you can find their own amortization loan calculator.


Could you inform me about loan amortization tables?

A loan amortization table allows you to estimate the amount of a loan payment extended over how many months you would like the loan to be payable for.


Which is a better loan to obtain, an Amortization Loan or a a Bullet Loan?

Amortization Loans and Bullet Loans both have their advantages and disadvantages. If you plan to pay the loan back right a way, a Bullet Loan would be a good choice for you, however if you plan to pay the loan back over an extended time, an Amortization loan might suit you better.


How can you find the amortization of your loan?

when you request a loan, the institution will give you a contract or paperwork of the loan. In the contract of payment, you will find any details regarding the loan: interest, amount, amortization and other the terms.


Is a loan amortization calculator difficult to use?

No, a loan amortization calculator is not difficult to use. You will need some information like the amount of your loan, interest rate and length of the loan to get an accurate answer from the calculator.


What exactly is an auto loan amortization ?

The term "auto loan amortization" simply refers to the payment shedule associated with an auto loan. Auto loans can be obtained at a variety of financial establishments, whilst amortization schedules for such loans are available online.


Where can one find an amortization loan calculator?

One can find an amortization load calculator on various sites. Usually one will find an amortization loan calculator on a financial website or at your local bank.


Which websites carry details on car loan amortization?

To find information on car loan amortization visit thecalculatorsite.com. They have various calculators available.


How do you use a amortization loan calculator?

You will need the following figures. Loan amount, loan term, interest rate and start date. Entering the information will enable the amortization loan calculator to estimate your repayments.


What information does an amortization loan table show?

An amortization loan table shows the days in which a fraction of a mortgage should be paid. Amortization usually refers to paying off a debt over a regular schedule.


Where can I get auto loan amortization?

Some of the best places to get a loan amortization would have to be www.bankrate.com their calculator is top notch they can crunch numbers like no other.


Where to find a loan amortization calculator?

If you are looking to use a loan amortization calculator, there are many banking websites that have them available. Websites such as bankrate and Bank of Canada have them.


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's a loan amortization schedule?

A loan amortization schedule is basically a calculator, its an outstanding balance calculation, and is used so that during a loan the balance which is owed can be calculated at any time.