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Refinance > Negative Amortization

The following information is about Negative Amortization.

Negative Amortization Defined

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.

This definition is in context to Refinance. See more contextual defintions for Negative Amortization.


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