A type of loan where the repayment only covers the interest that accumulates on the loan balance and not the actual price of the property. The principal does not decrease with the payments. Interest-only loans usually have a term of 1-5 years.
Loan where capital is not repaid during the life of the loan, but as a lump sum at the end of the loan. Annual interest is on the full amount of the loan
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.