Standing Mortgage

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Dictionary Says

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.

Investopedia Says

Investopedia explains '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.



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