FT MarketWatch

Negative amortization

A gradual increase in mortgage Debt that occurs when the monthly payment is insufficient to Cover the Interest due, and the Balance owed keeps increasing (at least in the first few years).

Related Terms: 9 Balance, Cover, Debt, Interest, Inc., Mortgage, Mortgage debt, Owe, OCC
Other Related Pages: Category: Real_Estate Starting With: N
Additional Related Terms: 10-K, Adjusted balance method, Account balance, Average daily balance, Average daily balance method, Accrued interest, At par, All or any part, At best, At call