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Definition of 'Endowment Loan'
A type of mortgage in which the borrower makes only interest payments on the mortgage, while payments that would have gone to repay the principal are instead funneled into an endowment fund. Under an endowment loan, the borrower does not repay the principal until the mortgage expires.
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Investopedia explains 'Endowment Loan'
Endowment loans offer many incentives for borrowers, however, they can be riskier than traditional mortgages. When repaying an endowment loan, borrowers have a lower monthly payment, since no principal is being repaid. During good economic conditions, contributing to the endowment fund allows the borrower to earn interest on money that would have been repaid as principal.
The main risk with an endowment loan is derived from investing in the fund. Because no principal is repaid during the life of the mortgage, the borrower must rely on the investments performing well. If the fund loses value, the borrower could lose much of his or her investment in the endowment fund, but will still be required to pay the full mortgage amount.
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Search results for 'Endowment Loan'
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http://www.investopedia.com/articles/insurance/10/avoid-modified-endowment-contract-traps.asp
... Policies that fail this test are now classified as modified endowment contracts
(MEC ... then withdraw both the interest and principal as a tax-free loan, as long ...
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http://financialedge.investopedia.com/financial-edge/0610/Dying-Careers-And-How-To-Survive-Them.aspx
... Charitable donations are down and endowment funds are still recovering
from the stock market turbulence. Foundations lost 30% of ...
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http://financialedge.investopedia.com/financial-edge/1009/3-Tips-To-Optimize-Your-Asset-Allocation-.aspx
... (Learn more about bubbles and busts in our Market Crash Tutorial.) Conversely, until
2009, the Yale University endowment hadn't seen a negative year in two ...
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http://www.investopedia.com/ask/answers/06/institutionalinvestor.asp
... pension funds, mutual funds, money managers, insurance companies, investment banks,
commercial trusts, endowment funds, hedge ... $30K Home Equity Loan, 5.74%, 5.77% ...
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http://www.investopedia.com/ask/answers/09/life-insurance-tax.asp
... This tax-free exclusion also covers death benefits payment made under endowment
contracts, worker's compensation insurance ... $30K Home Equity Loan, 5.74%, 5.77%. ...
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http://financialedge.investopedia.com/financial-edge/0811/Potential-Consequences-Had-The-U.S.-Defaulted.aspx
... As stock and real estate prices declined, endowment portfolios of colleges and
universities would shrink, further limiting the funding of scholarship programs ...
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http://financialedge.investopedia.com/financial-edge/0811/The-New-Retirement-Age.aspx
... According to a May 2011 online poll commissioned by the National Endowment for
Financial Education (NEFE), 59% of parents are providing financial assistance ...
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http://financialedge.investopedia.com/financial-edge/0711/7-High-Paid-Public-Service-Jobs.aspx
... out an educational facility is worth it. Check out A Career In Endowment
Management.). The Bottom Line Overtime, benefits and job ...
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http://financialedge.investopedia.com/financial-edge/0711/Charity-CEOs-Are-They-Being-Paid-Too-Much.aspx
... Krens, Solomon R., Guggenheim Foundation Salary (2008): $1,716,343 Under Krens'
guidance, the foundation saw a six-fold increase in the museum's endowment. ...
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http://financialedge.investopedia.com/financial-edge/0310/This-Week-in-Financal-History-Speculative-Bubbles-Bill-Gates-Coca-Cola-and-Capitalism.aspx
... lived). In 1913, John Rockefeller chose March 14 as the day to launch the
Rockefeller Foundation with a $100 million endowment. Finally ...
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