Finance
In Kentucky, negative amortization on a mortgage means:
AThe loan balance decreases faster than scheduled
BThe loan balance increases because payments do not cover interest✓ Correct
CThe interest rate decreases over time
DThe borrower pays extra toward principal each month
Explanation
Negative amortization occurs when loan payments are less than the interest due, causing the unpaid interest to be added to the loan balance, which grows over time.
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