Definition of "Cumulative Interest"

Mary Ann  Mercer / Buyers Agent real estate agent

Written by

Mary Ann Mercer / Buyers Agentelite badge icon

Downing-Frye Realty, Inc.

The sum of all interest payments to date or over the life of the loan. This is not a good measure of the cost of credit to the borrower because it does not include upfront cash payments and it is not adjusted for the time value of money.

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