Which One of These Situations Creates Negative Amortization

question 79

Multiple Choice

Which one of these situations creates negative amortization?

• A)Increasing the amount of the monthly mortgage payment
• B)Paying less than the monthly interest on a mortgage
• C)Decreasing the amount paid into an escrow account
• D)Lowering the mortgage interest rate
• E)Decreasing the amount of the down payment

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Definitions:

Independent Companies

Businesses that operate independently, without the control or influence from larger corporate chains or conglomerates.

Share Skills

The practice of exchanging knowledge or competencies among individuals or groups to enhance collective proficiency.

Decision-Making Power

The authority to make decisions, often held by leaders or groups in an organization, affecting the direction and practices of the entity.

Outsources

The practice of delegating certain job functions or tasks to external entities or individuals.