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What is a negative amortization?

Roger Moore

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Kaitlin Dean on January 2, 2020

it is a financial instrument evidencing debt usually secure by real property such as land or a house or a commercial building. the negative part means that one is not paying the all of the payment of interest . the part not paid is added to the balance thus increasing the amount of the debt instead of paying it off. The occasion for it to be used would be rare.


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