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Which One of These Situations Creates Negative Amortization

Question 54

Multiple Choice

Which one of these situations creates negative amortization?


A) When the amount of the monthly mortgage payment increases
B) When the monthly mortgage payment does not cover the interest owed
C) When the amount paid into an escrow account decreases
D) When the mortgage interest rate decreases
E) When the amount of the down payment is lowered

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