Meaning NEGATIVE AMORTIZATION: A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later
More terms such as Negative amortization in Dictionary N.
- Definition Negative Covenant:
- Examples A bond covenant that limits or prohibits certain actions unless the bondholders agree negative amortization definition.
- Definition Net Present Value Rule:
- Examples An investment is worth making if it has a positive NPV Projects with negative NPVs should be rejected negative amortization explain.
- Definition NEO:
- Examples Abbreviation for nonequity options, which are options contracts on foreign currencies, debt issues, commodities, and stock indexes negative amortization what is.
- Definition Netting Out:
- Examples To get or bring in as a net; to clear as profit negative amortization meaning.
- Definition Normal Random Variable:
- Examples A random variable that has a normal probability distribution negative amortization abbreviation.
