Question: How does a negatively amortized loan affect a borrower's equity in the property over time? It stabilizes equity by maintaining consistent payment amounts. It decreases
How does a negatively amortized loan affect a borrower's equity in the property over time?
It stabilizes equity by maintaining consistent payment amounts.
It decreases equity because the principal balance increases.
It increases equity due to larger payments towards the principal.
It has no impact on equity as it only changes the loan's interest rate.
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