Deferred Interest Mortgage

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Dictionary Says

Definition of 'Deferred Interest Mortgage'

A mortgage loan that allows the borrower to make minimum payments that are less than the entire amount of interest owed. The remaining interest is added to the amount of loan to be paid off. This is considered to be a negative amortization. The homeowner will let interest accrue, and will ultimately owe more than the original value of the loan. An adjustable rate mortgage (ARM) might offer this sort of payment structure.

Investopedia Says

Investopedia explains 'Deferred Interest Mortgage'

By making minimum payments that do not cover the loan principal, the balance on the loan is unlikely to get smaller since the interest is calculated on the outstanding principal. While low minimum payments do give the borrower payment flexibility, homeowners might not fully understand how complex this sort of mortgage can be.
Search results for

'Deferred Interest Mortgage'

  • Choose Your Monthly Mortgage Payments

    http://www.investopedia.com/articles/pf/07/mortgage-payments.asp
    ... interest-only payment. Therefore, deferred interest is created and added
    to the principal balance of the mortgage. The rate of change ...

  • Make A Risk-Based Mortgage Decision

    http://www.investopedia.com/articles/pf/07/mortgage_decision.asp
    ... A payment option mortgage can offer very low initial monthly payments when deferred
    interest is added to the principal balance of the mortgage, but triggers ...

  • Mortgage Basics: The Amortization Schedule | Investopedia

    http://www.investopedia.com/university/mortgage/mortgage4.asp
    ... in terms of paying down a mortgage, they also ... payments that are less than the interest
    payments over ... The $100 difference, known as deferred interest, is added ...

  • 20 Investments: Mortgage-Backed Securities | Investopedia

    http://www.investopedia.com/university/20_investments/11.asp
    ... Objectives and Risks Mortgage-backed securities are an ... get some capital appreciation
    as interest rates fall ... very suitable for most tax-deferred savings accounts ...

  • The Rise And Demise Of New Century Financial

    http://www.investopedia.com/articles/07/new-century.asp
    ... New types of mortgages were introduced to borrowers, which allowed for
    interest-only payments and deferred interest. Mortgage companies were rolling out ...

  • Profit From Mortgage Debt With MBS

    http://www.investopedia.com/articles/06/mortgagebackedsecurities.asp
    ... may be better suited for tax-deferred accounts. ... 2. Stripped Mortgage Securities Strips
    are MBS that pay investors principal only ( PO ) or interest only (IO ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Mortgage ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/mbs-mortgage-backed-securities.asp
    ... Income Tax Terminology; 9.4 Tax Deferred Liabilities; 9.5 ... 14.23 Mortgage-Backed
    Securities (MBS); 14.24 Federal Issues; ... The Term Structure of Interest Rates; 14.30 ...

  • CFA Level 1 Study Guide - Alternative Investments - Real Estate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/real-estate-investments.asp
    ... Income Tax Terminology; 9.4 Tax Deferred Liabilities; 9.5 ... 14.23 Mortgage-Backed
    Securities (MBS); 14.24 Federal Issues; ... The Term Structure of Interest Rates; 14.30 ...

  • Top Homeowner Tax Write-Offs For 2010 - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1210/Top-Homeowner-Tax-Write-Offs-For-2010.aspx
    ... and future tax breaks without having to be placed inside a tax-deferred account
    like an ... IN PICTURES: 9 Ways To Use A Tax Refund Mortgage Interest This is still ...

  • CFA Level 1 Study Guide - Liabilities - Tax Deferred Liabilities ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/tax-deferred-liabilities.asp
    ... Income Tax Terminology; 9.4 Tax Deferred Liabilities; 9.5 ... 14.23 Mortgage-Backed
    Securities (MBS); 14.24 Federal Issues; ... The Term Structure of Interest Rates; 14.30 ...

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