The "negative-amortization" mortgage typically converts later to a

Name: The "negative-amortization" mortgage typically converts later to a
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The "negative-amortization" mortgage allows for smaller payments in the beginning, but the interest is added to the principal balance, causing the total amount owed to increase rather than decrease. Eventually, the mortgage will convert to a traditional mortgage with a higher payment to make up for the unpaid interest and bring the balance down.

The "Negative-Amortization" Mortgage Typically Converts Later to a