Finance
What is 'negative amortization' in a Kansas mortgage?
AA decrease in the principal balance each month
BA situation where the minimum payment is less than the monthly interest, causing the unpaid interest to be added to the loan balance✓ Correct
CAn amortization schedule with declining payments
DA provision reducing the interest rate over time
Explanation
Negative amortization occurs when a minimum payment is less than the interest accruing — the shortfall is added to the principal balance, causing the loan to grow larger rather than smaller.
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