Standing Mortgage


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.

  1. Amortization

    1. The paying off of debt in regular installments over a period ...
  2. Amortization Schedule

    A complete schedule of periodic blended loan payments, showing ...
  3. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  4. Lender

    Someone who makes funds available to another with the expectation ...
  5. Credit

    1. A contractual agreement in which a borrower receives something ...
  6. Bank

    A financial institution licensed as a receiver of deposits. There ...
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