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Negative equity |
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Negative equityA situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: £80,000Deposit: £10,000Mortgage: £70,000If the value of the property falls below £70,000, the mortgage holder has negative equity in the property.Similar MatchesNegative yield curveNegative yield curveWhen the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing. Negative amortizationNegative amortizationA loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later. Negative covenantNegative covenantA bond covenant that limits or prohibits certain actions unless the bondholders agree. Negative listNegative listIn an international agreement, a list of those items, entities, products, etc. to which the agreement will not apply, the commitment being to apply the agreement to everything else. Contrasts with positive list. Negative pledge clauseNegative pledge clauseA bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders. Further SuggestionsN Negative AmortizationNegative NPV tie in project Negative externality Negative working capital Negative duration Negative income tax Negative cash flow Negative convexity |
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