It occurs when a principal balance on a mortgage loan increases because the monthly loan payment is lower than the amount of monthly interest being charged. What is it?

The correct answer is A. Negative amortization. See the full explanation below for the reasoning.

Question

Options

ANegative amortization
BPositive amortization
CAmortization imbalance
DPayment gap

How the community answered

(46 responses)

A
72% (33)
B
4% (2)
C
7% (3)
D
17% (8)

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