Negative Amortization definition

Negative Amortization. That portion of interest accrued at the Note Rate in any month which exceeds the Monthly Payment on the related Mortgage Loan for such month and which, pursuant to the terms of the Mortgage Note, is added to the principal balance of the Mortgage Loan.

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Negative Amortization. A gradual increase in the mortgage debt that occurs when the monthly fixed installment is not sufficient for full application to both principal and interest. The interest shortage is added to the unpaid principal balance to create "negative" amortization.

Negative Amortization. With respect to each Distribution Date, the amount of interest on the Mortgage Loans that the related Mortgagors are not obligated to pay as interest (and which shall be added to the Scheduled Principal Balance of each such Mortgage Loan) due to the negative amortization feature of such Mortgage Loans, in each case during the related Collection Period.

Examples of Negative Amortization in a sentence

• Negative Amortization Numeric – Integer 12 999 Negatively Amortizing ARMs Only >= 0 to <=120 61 Subsequent Minimum Payment Reset Period The maximum number of months (after the initial period) a borrower can pay the minimum payment before a new minimum payment is determined after the initial period.

• Negative Amortization Numeric – Integer 12 999 Negatively Amortizing ARMs Only >= 0 to <=120 62 Option ARM Indicator An indicator of whether the loan is an Option ARM.

• Negative Amortization Numeric – Decimal 0.075 9.999999 Negatively Amortizing ARMs Only >= 0 and < 1 60 Initial Minimum Payment Reset Period The maximum number of months a borrower can initially pay the minimum payment before a new minimum payment is determined.

• Negative Amortization Numeric – Integer 1 99 ARMs Only See Coding 0 = No 1 = Yes 99 = Unknown 63 Options at Recast The means of computing the lowest monthly payment available to the borrower after recast.

• Negative Amortization Numeric – Decimal 250 9(10).99 Option ARMs Only >= 0 66 Prepayment Penalty Calculation A description of how the prepayment penalty would be calculated during each phase of the prepayment penalty term.

More Definitions of Negative Amortization

Negative Amortization means with respect to each Negative Amortization Loan, that portion of interest accrued at the Mortgage Interest Rate in any month which exceeds the Monthly Payment on the related Loan for such month and which, pursuant to the terms of the Note, is added to the principal balance of the Loan.

Negative Amortization means an amortization method under

Negative Amortization means an amortization method under which the outstanding balance may increase at any time over the course of the loan because the regular periodic payment does not cover the full amount of interest due.

Negative Amortization. With respect to each Negative Amortization Mortgage Loan, that portion of interest accrued at the Net Mortgage Interest Rate in any month which exceeds the Monthly Payment on the related Mortgage Loan for such month and which, pursuant to the terms of the related Mortgage Note, is added to the principal balance of the Mortgage Loan.

Negative Amortization means the additions to the principal amount of a Loan arising from the insufficiency of regularly scheduled payments to cover interest as it accrues against the principal amount of the Loan as provided for therein.

Negative Amortization. Any increase in the unpaid principal balance of a Mortgage Loan resulting from the addition of Deferred Interest to that principal balance.

Negative Amortization means an increase in the principal