Question: With a minimum payment option ARM, it is possible for a borrower to make a minimum interest payment which is below the current required interest
With a minimum payment option ARM, it is possible for a borrower to make a minimum interest payment which is below the current required interest payment,
resulting in the unpaid difference being added to the loan principal. This is called
inclining principal.
negative amortization.
reverse amortization.
ballooning payments.
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