Negative amortization is the process of how a mortgage balance increases over time instead of decreasing. Reverse mortgages do not require any payments
to be paid on a monthly basis. However, since a reverse mortgage is not free money, the homeowner is still charged interest (and mortgage insurance
in the case of FHA reverse mortgages), and these charges are added to loan balance increasing the balance to be eventually paid when the last homeowner
permanently leaves the home.
How Negative Amortization Works on Reverse Mortgages [DOWNLOAD]
