How Reverse Amortization and Negative Amortization Work

How Reverse Amortization and Negative Amortization Works Brought to you by MyHECM.com. Mortgage and retirement resources for seniors, their families, and their advisors. Please help us out by clicking the Like and Subscribe buttons. What Is Reverse Amortization? Reverse amortization is also known as negative amortization. Reverse amortization is a type of mortgage amortization where the payments don't cover all of the interest. Is reverse amortization risky? It can be! We'll cover what to watch out for in a moment. The most familiar reverse amortization mortgages are pay-option ARMs graduated-payment mortgages and reverse mortgages.