Page "Negative amortization" Paragraph 5

All NegAM home loans eventually require full repayment of principal and interest according to the original term of the mortgage and note signed by the borrower.

Most loans only allow NegAM to happen for no more than 5 years, and have terms to " Recast " ( see below ) the payment to a fully amortizing schedule if the borrower allows the principal balance to rise to a pre-specified amount.