Mortgage Dictionary: Definition of Interest-Only Mortgage
Here is the definition for 'Interest-Only Mortgage'. To show a different definition, select a term from the dropdown text box. The online mortgage glossary will display a definition, plus links to related information.
Select term:
Interest-Only Mortgage
An interest-only mortgage allows the borrower to pay only interest
on the loan for a set period of time. At the end of that time, the borrower may renew
the interest-only mortgage, repay the principle, or (under some arrangements) change
the loan to a traditional
fixed-rate mortgage
.
|