Business, Legal & Accounting Glossary
Minimum amount that has to be repaid every month once a mortgage is taken. Usually the payment is kept constant for a certain introductory duration, usually of 12 months. Though the payment amount remains the same for the entire introductory period, a change in interest rate is allowed sooner. The interest not paid is added to the principal leading to known as negative amortization.
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This glossary post was last updated: 16th November, 2021 | 0 Views.