Mortgage Dictionary
Select a term from the dropdown text box. The online mortgage
dictionary will display a definition, plus links to other
related web pages.
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
.