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interest-only loan

   Also found in: Wikipedia 0.01 sec.
Interest-only loan
A loan in which payment of principal is deferred and interest payments are the only current obligation.

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.



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If you're planning on retiring in that house or paying it off, then an interest-only loan isn't for you," says Dunagan.
Spinner and David Zlotnick of Meridian's New York office secured a 12-month, interest-only loan floating at Prime + 6%.
But the interest-only loan, which stretches 35 years, fit her family's situation.
 
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