Negative Amortization

The unpaid interest which is added to the mortgage principal in a loan where the principal balance increases rather than decreases because the mortgage payments do not cover the full amount of interest due.

Term Source: MBA Glossary
Categories: Data
Hash Tags: #MBAGlossary

©2020 The Mortgage Industry Standards Maintenance Organization. All rights reserved.

AUTHORIZED USAGE: All usage of this product is dictated by the terms and conditions within the MISMO 2018 Intellectual Property Rights (IPR) Policy For more information, please see complete Authorized Usage / Patent Disclosure Request or contact info@mismo.org.