Zero-Coupon Mortgage

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Dictionary Says

Definition of 'Zero-Coupon Mortgage'

A form of commercial financing in which regular interest and principal payments are deferred until maturity, rather than paid over the course of the loan. While the coupon rate on such a mortgage is technically zero because there are no regular coupon or interest payments, interest accrues and is rolled into the principal amount at maturity.
Investopedia Says

Investopedia explains 'Zero-Coupon Mortgage'

Zero-coupon mortgages are especially useful for commercial projects where cash flows to service debt may not be available until the project nears completion. As total interest plus principal repayment is only received by the lender when the loan matures, the credit risk is significantly higher than with a conventional loan. As such, lenders may only offer this form of financing to established commercial borrowers with pristine credit records.
Search results for

'Zero-Coupon Mortgage'

  • Series 6 Study Guide - Investment Securities - Other Types of ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/other-types-of-bonds.asp
    ... on a certain date and no sooner - which is why zero-coupon bonds are ... CMOs. : CMOs,
    short for collateralized mortgage obligations, are mortgage-backed securities ...

  • Series 65 Study Guide - Cash Equivalents and Fixed Income ...

    http://www.investopedia.com/exam-guide/series-65/cash-equivalents-fixed/corporate-bonds.asp
    ... Examples include mortgage bonds (senior or junior), equipment trust certificates
    and ... ratio = Par Value of Convertible Bond / Conversion Price. Zero-coupon Bonds: ...

  • What is the difference between a zero-coupon bond and a regular ...

    http://www.investopedia.com/ask/answers/06/zerocouponregularbond.asp
    ... If you bought the zero-coupon bond for $952.38, you would receive $1,000 at maturity ...
    Should I pay my mortgage with my credit card to earn credit card rewards? ...

  • 20 Investments: Conclusion | Investopedia

    http://www.investopedia.com/university/20_investments/21.asp
    ... A mortgage-backed security (MBS), also known as a "mortgage pass-through" or a ... A
    zero-coupon security, or "stripped bond", is basically a regular coupon-paying ...

  • 20 Investments: Zero-Coupon Securities | Investopedia

    http://www.investopedia.com/university/20_investments/20.asp
    20 Investments: Zero-Coupon Securities. ... What Is It? A zero-coupon security, or "stripped
    bond", is basically a regular coupon-paying bond without the coupons. ...

  • 20 Investments: Mortgage-Backed Securities | Investopedia

    http://www.investopedia.com/university/20_investments/11.asp
    20 Investments: Mortgage-Backed Securities. ... When you invest in a mortgage-backed
    security, you are lending money to a homebuyer or a business. ...

  • 20 Investments: Real Estate Investment Trusts (REITs) ...

    http://www.investopedia.com/university/20_investments/17.asp
    ... Mortgage REITs - Mortgage REITs deal in investment and ownership of property mortgages. ...
    Mortgage REITs tend to do poorly as interest rates rise. ...

  • Why do interest rates tend to have an inverse relationship with ...

    http://www.investopedia.com/ask/answers/04/031904.asp
    ... An easy way to grasp why bond prices move opposite to interest rates is to consider
    zero-coupon bonds, which don't pay coupons but derive their value from the ...

  • Series 7 Study Guide - Debt Securities - Treasury STRIPS ...

    http://www.investopedia.com/exam-guide/series-7/debt-securities/treasury-strips.asp
    ... It would then sell to investors 61 separate zero-coupon securities, (60 coupons
    plus the principal), with ... Next: Collateralized Mortgage Obligations (CMOs ...

  • How Bond Market Pricing Works

    http://www.investopedia.com/articles/bonds/07/pricing_conventions.asp
    ... Mortgage-Backed Securities (MBS): A bond collateralized by the cash flows of principal ...
    discount rate) that makes the present value of a zero-coupon bond equal ...

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