Negative amortization occurs when mortgage payments don’t cover the interest owed, causing the loan balance to increase. It can happen with certain variable-rate or interest-only mortgage structures, depending on the terms. In general, it may be addressed by adjusting payment amounts, changing the loan’s rate structure, refinancing, modifying loan terms, or speaking with a qualified housing or financial professional. Timing can matter, since negative amortization can create financial strain over time and may affect overall loan costs.