MLchartDataset catalogue

Negative amortization

Term · Law · MLC-T-LAW-003371

A loan payment structure where the scheduled payments are insufficient to cover the interest accrued, causing the unpaid interest to be added to the principal balance. This results in the loan amount increasing over time, rather than decreasing. Negative amortization loans are typically associated with adjustable-rate mortgages and can lead to borrowers owing more than the original loan amount.

Table 1. Record
IdentifierMLC-T-LAW-003371
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-003371",
  "term": "Negative amortization",
  "field": "Law",
  "definition": "A loan payment structure where the scheduled payments are insufficient to cover the interest accrued, causing the unpaid interest to be added to the principal balance. This results in the loan amount increasing over time, rather than decreasing. Negative amortization loans are typically associated with adjustable-rate mortgages and can lead to borrowers owing more than the original loan amount.",
  "url": "https://mlchart.com/terminology/law/negative-amortization/"
}

Record 3,352 of 5,441 in Law terminology (MLC-0107). Request the full dataset.