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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
A recent TV, documentary highlighted a man who was experiencing difficulties paying PS800 per month on an interest only mortgage, on a property of PS130,000.
A report by Bristol University and the International Longevity Centre (ILC-UK) found that about two-fifths (40%) of people aged 75 and over who still have a mortgage to pay off have an interest only mortgage with no linked investment with which to pay the loan back.
Worryingly some owners who have an interest only mortgage do not even have a relevant investment in place to enable them to pay of the capital balance outstanding.
The Financial Conduct Authority (FCA) estimates 55% of Wales' 103,000 interest only mortgage holders will have a shortfall of PS50,000 or more between what their current repayment plan will pay back and what the mortgage is worth.
An interest only mortgage can appear to be a tempting way of buying a property.
SL Green completed a refinancing of the first mortgage loan on 485 Lex with a 10-year interest only mortgage with effective interest rate of 5.566%.
But Louise Cuming, of, says people should still think carefully before taking out an interest only mortgage.
QMY existing interest only mortgage runs until 2014 when I shall be retired.
This is becoming a more common problem and those customers who are coming close to retirement age with an interest only mortgage may not be granted an extension to their home loan.
interest only mortgage, do not have a repayment vehicle in place with which to repay their mortgage.
Q:MY sister has an interest only mortgage of pounds 19,000.
Four out of 10 people with an interest only mortgage that is not backed by an investment said they could not afford to set any money aside towards repaying their loan.