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Glossary - All Financing Terms are Defines Here
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Negative Amortization :
Occurs when your monthly payments are not large enough 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 homebuyer ends up owing more than the original amount of the loan.

Net Effective Income :
The gross income of the borrower, minus the percentage removed for federal and/or state income tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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