Mortgage Goes Up Not Down

When a mortgage loan is paid down bit by bit every month along with regular payments of interest, the process is known as amortization.With some plans in which the monthly payment doesn't cover the full interest due, the shortfall is added to the amount owed.The principal, the remaining debt,  builds up instead of decreasing.The term for that situation is negative amortization.

It can happen with a few kinds of adjustable rate mortgages, and also with those new optional-payment mortgage plans being used in areas where home prices are very expensive.