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Negative Amortization
A situation in which the principal balance on a loan increases because the payments made do not cover the interest due.
Early Payments
Early payments are payments made before their due date, which can help reduce the amount of interest owed over time on loans.
Monthly Interest Charge
The amount charged by a lender to a borrower for the use of assets on a monthly basis, calculated as a percentage of the principal.
Real Rate
The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.
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