interest only
No balance reduction
Interest only describes a loan payment structure where the borrower pays only the interest charges for a specified period, not the principal balance.
Common with mortgages and investment loans, this arrangement keeps early payments low but doesn't build equity: We took an interest-only mortgage for the first five years.
Eventually, payments increase substantially when principal repayment begins.
- loanBorrowed money repaid later
- home loanDebt for property purchase
- mortgageSecured home loan
- real estateLand and its structures
- adjustable rateInterest that fluctuates
teaser rate · monthly payment · payment · principal · balloon · amortization · refinance · debt · curiosity · fascination · intrigue · attention · captivate · stake · investment · rate · APR · lender
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- mortgage termsmortgages, home loans, foreclosure, lien, fixed rate
- payment termspayment due date, past due, late payments, payment deadline, late fee
interest onlyamortizing
Gradually eliminating debt
conventional mortgage · fixed-rate mortgage · balloon payment
interest, interested, interesting, interestingly, disinterest, disinterested, uninterested, uninteresting, interests