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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

Correct Answer:

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