Negative Amortization
When loan payments are less than interest owed increasing the balance
Full Definition
Why It Matters
Understanding negative amortization helps you make informed decisions about your mortgage. This knowledge can save you money and help you avoid common pitfalls in the homebuying process.
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Frequently Asked Questions
Negative Amortization refers to when loan payments are less than interest owed increasing the balance. This is an important concept in mortgage lending that affects how your loan works.
Understanding negative amortization can help you make better decisions about your mortgage. Contact NMHL for personalized guidance on how this applies to your situation.
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