interest-only loan

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Interest-only loan

A loan in which payment of principal is deferred and interest payments are the only current obligation.

Interest-Only Loan

A non-amortized loan. During the payment period of interest-only loans, one only pays on the interest that accumulates but not on the principal. At the end of the loan's term, the entire principal is due. An example is an interest-only mortgage, in which one makes interest payments for the term of the mortgage and then refinances in order to pay the principal at maturity.

interest-only loan

A loan on which one pays periodic interest payments without any reduction in principal,and the entire principal balance is due and payable upon maturity of the note.

References in periodicals archive ?
Laurie Silver, Northeast sales manager, originated the $800,000 transaction, which involved a 10-year interest only loan at a 9.
4 million ten-year, interest only loan with an interest rate of 5.
NovaStar continues to improve the diversity of its product offerings by introducing an Interest Only Loan option to its wholesale customers.
Washington Mutual Home Loans and Insurance Services Group announced today it will offer a new portfolio product, the 5/1 CMT Interest Only loan.
Global Banking News-April 9, 2013--Danish central bank's rethink on interest only loans welcomed by mortgage bankers(C)2013 ENPublishing - http://www.
The proliferation of what Fed chairman Alan Greenspan dubbed exotic mortgage products such as adjustable rate loans, piggyback loans, interest only loans, and home equity loans, whose monthly payments can as much as double if interest rates rise to not unfathomable levels, as well as mixed economic signals such as choppy job growth, and the way real estate appreciation has exceeded salary increases have provided fuel for many an apocalyptic scenario.
Risks include the portfolio's lack of seasoning and geographic concentration, as well as the permitted financing of various loan products and a growing percentage of interest only loans.
For instance, we're seeing greater demand for interest only loans and a wider range of adjustable rate products.
We have spent a significant amount of time and research with focus groups and all indications are the Job Loss Protection Programs are a significant selling point, which make our products, including Interest Only loans, an impressive choice.
Those chickens will begin coming home to roost later this year as payments on adjustable and interest only loans rise.
McGee pointed to the growing use of interest only loans and the newer so-called option ARMS as another source of potential trouble in the future.
Typically, the interest only loans convert to fully amortize adjustable rate loans in five years.