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Investments & Financial Planning

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  4. In relation to mortgages , what is Negative Amortization ?

In relation to mortgages , what is Negative Amortization ?

Negative Amortization is a situation in which the borrower is paying less interest than what is actually being charged for a mortgage loan. The unpaid interest is added to the loan's principal. The borrower may end up owing more than the original amount of the mortgage.

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