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Mortgage Professor about negative amortization: | |||||||||||||||||||||||
How Does Negative Amortization on a Mortgage Work?
September 15, 1998 Negative Amortization and Related Concepts Ordinarily, the mortgage payment you make to the lender has two parts: interest due the lender for the month, and amortization of principal. Amortization means ... more... Marketing Adjustable Rate Mortgages With Artful Deceptions November 22, 2004 Adjustable rate mortgages (ARMs) have always been a hard sell. ARMs have multiple features, which makes them complicated, and complexity doesn?t sell well. Most loan officers try to avoid complexities by focusing on one feature that may attract the client ... more... |
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negative amortization related definitions |
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Negative Amortization
Negative Amortization Negative amortization, also known as Neg Amortization, NegAm, NegAmMort, occurs when borrower pays back less than the full amount of interest owed to the lender each month. The difference betweeen full interest and paid amount is added to the total amount ... more... Untitled Document Defereed Interest When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance. See negative ... more... |
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