Financial Definition of Negative Amortization
Meaning of Negative Amortization
A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later.
Related Entries of Negative Amortization in the Encyclopedia of Law Project
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Negative Amortization in Historical Law
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Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Negative Amortization in the Legal Abbreviations and Acronyms Dictionary.
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What is Negative Amortization?
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Concept of Negative Amortization in the context of Real Property
A short definition of Negative Amortization: A condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases.
Concept of Negative Amortization in the context of Real Property
A short definition of Negative Amortization: A condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases.
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