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• Occurs when the monthly payments in an adjustable-rate mortgage loan do not cover all the interest owed. The interest that is not paid in the monthly payment is added to the loan balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments that are not high enough to cover the interest due or when the minimum payments are set at an amount lower than the amount you owe in interest.

  The Federal Reserve Board - Cite This Source - This Definition
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  Cite Definition for Negative amortization

  American Psychological Association (APA)

  Negative amortization. (n.d.). A Consumer's Guide to Mortgage Refinancings. Retrieved May 28, 2023, from website: http://www.expertglossary.com/definition/negative-amortization.

  Chicago Manual of Style (CMS)

  Negative amortization. www.federalreserve.gov. A Consumer's Guide to Mortgage Refinancings. The Federal Reserve Board. http://www.expertglossary.com/definition/negative-amortization (accessed: May 28, 2023).

  Modern Language Association (MLA)

  "Negative amortization." A Consumer's Guide to Mortgage Refinancings. The Federal Reserve Board. 28 May. 2023 http://www.expertglossary.com/definition/negative-amortization.

• Browse Related Terms: Adjustable-Rate Mortgage (ARM), amortization, balloon mortgage, Convertible ARM, Debarment, Fixed-Rate Mortgage (FRM), Interest-only mortgage, Lock-In, Lock-in agreement, Mortgage life insurance, Negative amortization, Payment Cap, Right of rescission, Self-Amortizing Loans, Swap, term, Weighted Average Life (WAL)

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All > Business > Finance > Personal Finance > Mortgage

• the condition of owing more on the property than the property is worth.

  Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition
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  Cite Definition for Negative Equity

  American Psychological Association (APA)

  Negative Equity. (n.d.). Making Home Affordable Glossary. Retrieved May 28, 2023, from website: http://www.expertglossary.com/definition/negative-equity.

  Chicago Manual of Style (CMS)

  Negative Equity. www.makinghomeaffordable.gov. Making Home Affordable Glossary. Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program. http://www.expertglossary.com/definition/negative-equity (accessed: May 28, 2023).

  Modern Language Association (MLA)

  "Negative Equity." Making Home Affordable Glossary. Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program. 28 May. 2023 http://www.expertglossary.com/definition/negative-equity.

• Browse Related Terms: agent, Beneficiary, Co-Homeowners, Deed, Default, Grantor, Negative Equity, Real property, Title, trust, trust deed, Trustee

All > Business > Finance > Personal Finance > Mortgage

• For-profit mortgage lending institutions (other than banks, savings associations, and credit unions). These institutions do not take deposits.

  Federal Financial Institutions Examination Council - Cite This Source - This Definition
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  Cite Definition for Nondepository Institution

  American Psychological Association (APA)

  Nondepository Institution. (n.d.). Home Mortgage Disclosure Act (HMDA) Glossary. Retrieved May 28, 2023, from website: http://www.expertglossary.com/definition/nondepository-institution.

  Chicago Manual of Style (CMS)

  Nondepository Institution. www.ffiec.gov. Home Mortgage Disclosure Act (HMDA) Glossary. Federal Financial Institutions Examination Council. http://www.expertglossary.com/definition/nondepository-institution (accessed: May 28, 2023).

  Modern Language Association (MLA)

  "Nondepository Institution." Home Mortgage Disclosure Act (HMDA) Glossary. Federal Financial Institutions Examination Council. 28 May. 2023 http://www.expertglossary.com/definition/nondepository-institution.

• Browse Related Terms: Agency Code, Branch Office, Capitalization, Depository Institution, Federal Financial Institutions Examination Council (FFIEC), Federal Home Loan Bank Act of 1932, Federal Home Loan Bank Board (“FHLBank Board”), Federal Home Loan Banks (FHLBanks), Federal Housing Administration (FHA), Federal Savings and Loan Insurance Corporation (FSLIC), FHA Approved Lenders, Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), Nondepository Institution, Respondent or Reporter ID (RID), Thrift