Occurs when your monthly payments are not sufficient to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of negative amortization is that the home buyer ends up owing more than the original amount of the loan.
A written promise to pay a certain sum of money at a certain time. A negotiable note starts ”Pay to the order of” and is transferable by endorsement similar to a check.
