Term of the Day: Interest Shortfall

TERM OF THE DAY - NOVEMBER 3, 2011 Add Investopedia to Safe Sender List Find Investopedia on Interest Shortfall What Does it Mean? Any interest that has not been paid after the loan payments have been paid. An interest shortfall occurs when the loan accrues interest that has not been figured into the actual immediate payment. Adjustable-rate mortgages have interest shortfalls if their payments or interest rates are capped, leading to negative amortization. Investopedia Says... An interest shortfall can be a serious matter for homeowners who do not want their loans to go into negative amortization, and an extra mortgage payment or two may be... Read more » TODAY'S NEWSLETTER IS SPONSORED BY: Slideshow - 5 Tips For Diversifying Your Portfolio Follow these 5 easy steps to achieve a fully diversified portfolio you can be proud of.  View the Slideshow » Special Feature - Economic Recovery: Get Ready Take advantage of this once-in-a-lifetime opportunity in the financial markets. Click here for more. Related Terms Adjustable-Rate Mortgage - ARM Interest Interest Rate Mortgage Mortgage Interest See More » Related Links Will Your Retirement Income Be Enough? Analyzing Pension Risk How To Evaluate Pension Risk By Analyzing Annual Costs See More » Find Term Of The day Useful? Check out our other FREE newsletters! Stock Watch Weekly Forex Weekly News To Use Warren Buffett Watch Investing Basics The Chart Advisor Report Professionals in the Money You are currently subscribed to term-of-the-day as: newsforward@autoforextradingpro.com To unsubscribe or change your email settings, please click here. Copyright © 2011 - All rights reserved. Investopedia ULC.