What is a negative amortization home mortgage?

Impact to borrower depends heavily on home-value growth
Published on Aug 2, 2006

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by CareyBot

DEAR BOB: Several times you recently mentioned negative amortization home mortgages. What does that mean? Is it good or bad? –Myron H. DEAR MYRON: A negative amortization home mortgage is an adjustable-rate mortgage (ARM). The borrower’s monthly payment remains fixed ...