Sign Up or Log in
Homepage
Buy
Sell
Flat Fee MLS
Title
How it Works
Contact

Real Estate Glossary

What is Negative Amortization?

Negative amortization occurs when the monthly payments on a loan are not enough to cover the interest that is accruing, causing the loan balance to increase instead of decrease. This can happen when the interest rate on an adjustable-rate mortgage changes, making the payments too low to cover the interest.