• Bookmarks

    Bookmarks

  • Concepts

    Concepts

  • Activity

    Activity

  • Courses

    Courses


Negative amortization occurs when the payments made on a loan are insufficient to cover the interest due, resulting in an increasing loan balance over time. This situation can lead to higher long-term costs for borrowers and potential financial risk if the loan balance grows beyond the property's value or the borrower's ability to repay.
Relevant Degrees
History Empty State Icon

Log in to see lessons

3