2014-09-15T14:44:01+00:00 September 15th, 2014|
Negative Amortization is a condition created when the monthly mortgage payment is less than the amount necessary to pay off the loan over the period of time set forth in the note. Because you’re paying less than the amount necessary, the actual loan amount increases over time. That’s how you end up with negative equity. To pay off the loan, a lump-sum payment may have to be made.