Definitions for **"Interest Only Loan"**

A method of loan amortization in which interest is paid periodically over the term of the loan and the entire original loan amount is paid at maturity.

Payments are made to repay the minimum cost which is the interest and not the principal.

THE INTEREST IS PAID ON A MORTAGE WITH NO REDUCTION TO THE PRINCIPAL DURING THE SET TERM.

a loan in which the borrower makes periodic payments

a loan that the borrower only pays interest on the loan and nothing of the payment paid goes towards the principal of the loan

a loan where you only pay the interest that is due each month

a mortgage loan that does not require any repayment of principal for a predetermined period of time

a type of loan that can be used

On such a loan the borrower only pays the interest amount on the loan amount and not the principal. This results in a lower monthly payment as compared to an ARM or a fixed rate mortgage. As these loans are typically anchored to some index, the payments can vary based on the movement of such an index. Interest only loans have a fixed period after which the borrower starts paying both interest and the principal.

A type of loan for which the monthly payments only pay for the amount of interest that has accrued on the loan balance that month. The loan balance does not decrease with the interest-only payments. Generally, the interest-only payments last only for a preset amount of time.

only the loan's interest is paid during the term - principal is paid back at the end.

This type of loan is short term, one to five years, where only the interest is paid during the agreed term.

A loan is considered “interest only” if the monthly payment does not include any repayment of principal - the payment covers only the interest and the actual loan balance remains unchanged.

Usually a short term arrangement whereby payments are made on the interest only, not the principal.

A loan which is serviced by interest-only payments. At the end of the term the full principal plus interest for the last payment period of the loan is still owing.

The borrower only has to pay the interest that is accrued on the loan and no principal payments for a specified time period.

A loan where only the interest is paid for an agreed term (usually a short period of one to five years). The principle is then repaid over the remaining term of the loan by the conversion of repayments to â€œPrinciple & Interest.â€ Because each payment goes only toward interest, the outstanding balance of the loan does not decline with each payment.

A non-amortizing loan for which the lender receives only interest during the term of the loan and recovers principal in a lump sum at the end of the term: a "straight" loan.

A non-amortizing loan in which the lender receives only interest during the term of the loan and the principal is repaid at maturity.

Interest only strip (IO) Interest payments

A loan where only the interest is paid for an agreed term (usually a short period of one to five years) or during a construction period. The principle is then repaid over the remaining term of the loan by the conversion of repayments to Principle & Interest.

A loan where only the interest is repaid throughout the course of the loan. The original amount is repaid at the end of the term of the loan, rolled over by the same bank or the owner re-mortgages.

A loan in which the payments do not reduce the principal balance, but pay only the interest portion.

A loan in which the payments represent only interest payments and there is no amortization or reduction of the principal balance of the note.

A loan in which interest is payable at regular intervals until loan maturity, when the full loan balance is due. Does not require amortization. Contrast with self-amortizing mortgage.

the principal is paid back at the end of the term and only interest is paid during the term

A loan that calls for payments of only the interest due during the loan term, so that the entire principal amount is due in one lump sum at the end of the term.

Borrower pays back interest only on the loan and there is no amortization period until later or until the end of the term.

The interest on the loan is paid, no amount of the principal is reduced. Due to the loan amount not decreasing over the life of the loan, the borrower is assuming the value of the property will rise over time, giving a surplus when the loan expires.

a loan that requires only the interest to be repaid for a specific amount of years. The principle will not get paid down unless you choose to pay extra every month. A typical mortgage loan is principal and interest. To lower your payments, interest only loans are now available

A loan where the principal is repaid at the end of the loan term and interest only is repaid during the term of the loan. These loans are usually short term, say 1 to 5 years.

The borrower pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

The monthly repayment covers only the interest element of the loan leaving the capital outstanding at the end of the loan terms.

is a loan for which you only pay interest. No capital repayment is made until the last repayment, when the full balance outstanding is repaid. Hide Definition

A loan with periodic payments of interest only. The principal amount is due in lump sum(s) upon maturity or intervals.

A term loan arrangement calling for payments of interest only, not to include any amount for principal.

repayments which cover your interest only with no principal being paid off until the end of the loan term

an encouraging option for homebuyers to buy their dream home

a great way to make some money

a good means of either increasing your home