Finance
What is 'negative amortization' in a South Carolina mortgage?
AWhen the monthly payment exceeds the required amount
BWhen payments are less than interest owed, increasing the loan balance✓ Correct
CWhen the borrower pays extra principal each month
DWhen the interest rate decreases over time
Explanation
Negative amortization occurs when the monthly payment is less than the interest owed, causing the unpaid interest to be added to the loan balance. This increases the total debt over time.
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