Negative Amortization

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Posted on December 26, 2018 at 17:40 PM

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Negatively Amortizing Loan - Investopedia
A negatively amortizing loan is a loan with a payment structure that allows for a scheduled payment to be made where the payment made by the borrower is less than the interest charge on the loan ...
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FDIC: Interest-Only Mortgage Payments and Payment-Option ARMs
Owning a home is part of the American dream. But high home prices may make the dream seem out of reach. To make monthly mortgage payments more affordable, many lenders offer home loans that allow you to (1) pay only the interest on the loan during the first few years of the loan term or (2) make only a specified minimum payment that could be less than the monthly interest on the loan.

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