Tag Archives : amortization loans

Negative Amortization Loans

Negative Amortization Loans

Amortization means the depreciation of debts through payments made by the borrowers. Negative amortization is a type of loan where even when the borrower pays installments still the principle does not decrease instead the interest keeps adding and hence increases the installments and total loan. People avail these loans as they find it easy to pay the low installments earlier.

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