Taking a loan, especially mortgage loan, is an obligation that will influence our finances in the long run. Thus, any wrong decision can result in worsen financial health. Keep in mind that we all apply for some type of loan with the purpose to improve an aspect in our lives.
Before talking about the negative amortization there are two basic things that should be briefly explained. Namely, when taking out a loan you should be acquainted with terms such as: loan amortization and loans amortization schedule. In simple words, loan amortization is the process of paying off the principal amount
The need for a loan is imposing the need for you to understand different aspects associated with any loan. There are things such as interest rate, collateral, cosigner, repayment period, monthly payments, early repayment, etc. stated in the agreement. How many of these items in your loan agreement do you