Question: When negative amortization occurs with an Adjustable Rate Mortgage this indicates - all of the choices below the interest due during a given month is

When negative amortization occurs with an Adjustable Rate Mortgage this indicates -

  1. all of the choices below
  2. the interest due during a given month is higher than the monthly payment
  3. the market rate is above the indexed interest rate
  4. the loan is subject to caps

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