Definitions - N

Negative Amortization: Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost which is not covered by the payment is added to the unpaid principal balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results if monthly payments are not high enough to cover the interest due.
Non-conforming Loan: Also known as jumbo loans. Loans that are above the loan limits set by FNMA and FHLMC.
Nonconforming Use: A property which does not conform to the zoning of an area.
Note: A written promise to repay a certain sum of money on specified terms


For more information on our products, services or feedback on our Web site. Phone: (808) 534.4300 or (800) 379.1300 · Fax: (808) 534.4352 · Email: contactus@hawaiiusafcu.com		Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government		We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

Negative Amortization