interest-only
No equity payments
Interest-only describes a loan arrangement where payments cover only the interest charges, not the principal balance.
During an interest-only period, the amount owed doesn't decrease: They had an interest-only mortgage for the first five years.
These loans offer lower initial payments but delay the larger cost of paying down the debt itself.
loan
Borrowed money repaid later
- paymentFulfilling a financial obligation
- principalChief school administrator
- amortizationGradual debt reduction schedule
balloon · refinance · equity · lending · homeowner · borrower · ARM · adjustable · teaser · underwater
bonds
Ties that unite
- securitiesTradeable financial assets
- couponCertificate for reduced price
- yieldProduce or relinquish
dividend · income · portfolio · fixed-income · treasury · municipal · corporate · returns · capital · preservation
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- mortgage termsmortgages, home loans, foreclosure, lien, fixed rate
interest, only, interests, interested, interesting, interestingly, disinterested, uninterested, uninteresting