The HSH Mortgage Glossary Definitions are provided for informational purposes only. A condition where the loan balance goes up, rather than down, as payments are made. If a payment is not large enough to cover the interest due the difference is added to the principal.
Negative amortization can occur in certain types of adjustable rate mortgages.
No Cost Refinance A refinance with the fees and charges are added to the new mortgage amount instead of being paid up front. A mortgage which does not conform to credit or other standards, or to the maximum loan limits set by Fannie Mae and Freddie Mac. Jumbo Loan Note A signed, formal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The stated interest rate on a mortgage or other loan agreement. Origination Fee A fee charged by a lender to cover certain expenses associated with the loan origination.