Question: Which statement is true about a loan that has negative amortization? At the end of the term, the loan balance will be negative. The borrower
Which statement is true about a loan that has negative amortization?
At the end of the term, the loan balance will be negative.
The borrower makes payments of interest-only over the term of the loan.
Payments will not be sufficient to retire the loan balance.
Additional principal charges are periodically added to the monthly payment.
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