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MORTGAGE DICTIONARY
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click on the first letter of the desired term
in the table below and scroll through the list
of terms.
Interest-only
loan-- An advance of money in which the
installments pay only the interest
that accumulates on the loan balance. The loan
balance does not deccrease with the payments.
Usually the interest-only payments last for a
limited period, after which payments rise and
the borrower begins paying principal in addition
to interest.
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