DEFINITION of 'Standing Mortgage'
In contrast with a normal mortgage, standing mortgages are a form of interest-only loan. They have no amortization of principal during the life of the loan, but amortize fully at the end of the term.
BREAKING DOWN 'Standing Mortgage'
In a standing mortgage, the principal of the loan is fully paid at maturity in a balloon payment. Standing mortgage function in contrast to level-payment amortization notes which allocate some of each payment to principal throughout the entire mortgage term.