In finance, negative amortization (also known as NegAm, deferred interest or graduated payment mortgage) occurs whenever the loan payment for any period is less than the interest charged over that period so that the outstanding balance of the loan increases. As an amortization method the shorted amount (difference between interest and repayment) i...
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A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later.
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http://www.duke.edu/~charvey/Classes/wpg/bfglosn.htm
A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later.
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http://www.encyclo.co.uk/local/20047
A situation that occurs when a borrowers monthly payment is too small to cover the principal and the interest on a loan, therefore the outstanding balance of the loan actually grows larger with each payment.
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Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of negative amortization is that the buyer ends up owing more than the original amount of the loan.
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A loan repayment schedule in which the outstanding principal balance of the loan increases, rather t
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See: capitalized interest
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http://www.nolo.com/dictionary/negative-amortization-term.html
Is the increment to principal over time. This feature reflects the inadequacy of the periodic payment to service both principal and interest. It usually is the result of the addition of interest to the outstanding loan balance.
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http://www.oasismanagement.com/glossary/
when a mortgage payment received is below the interest-only payment, the difference will be added onto the principal balance of the loan.
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http://www.thetruthaboutmortgage.com/mortgage-dictionary/
Amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost which is not covered by the payment is added to the unpaid principal balance. This means that even after making many ...
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https://www.encyclo.co.uk/local/21390
amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost that isn't covered is added to the unpaid principal balance. This means that even after making many payments, you cou...
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https://www.encyclo.co.uk/local/21674
the increase of the principal of a loan by the amount by which periodic loan payments fall short of the interest due, usually as a result of an increase in the interest rate after the loan has begun.
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https://www.infoplease.com/dictionary/negative-amortization
No exact match found.
