Deferred Interest Mortgages

Definition of "Deferred interest mortgages"

Heike Sommer-Goldschmitz real estate agent

Written by

Heike Sommer-Goldschmitzelite badge icon

Sellstate Realty

Financing technique aimed at those people who only plan to live in a house for a short time. Under this mortgage, a lower interest rate and, thus, a lower monthly mortgage payment are charged. Upon the selling of the house, the lender receives the deferred interest plus a fee for postponing the interest that would normally have been paid each month.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Something that cannot be taken, returned, or revoked. An example is an irrevocable trust formed by a person giving her real estate to a trust administrator. ...

See common law. ...

Generation X, also known as Gen X , is the generational extract of Americans that are sandwiched between the Baby Boomer Generation and the Millennial generation (also called ...

Upon satisfaction of a mortgage or other debt payments, the deed releases property, or a portion of it, form the incumbrance. Often it is used in circumstances where a deed of trust is ...

Judicial finding that the debtor owes an amount exceeding the value of the collateral put up for the defaulted loan. ...

Matters that need to be rectified in a home or building prior to its sale or acceptance by a new owner. For example, a leaking water pipe should be repaired prior to showing the property to ...

Lender who possesses the collateral of the borrower if the loan is defaulted upon. ...

A major factor in depreciation resulting from wear and tear from use and natural deterioration through interaction of weather elements may cause depreciation to a structure. ...

Way to obtain a faster decision in a legal case than going to a trial. Procedural rules are followed so there is less time involved in gathering the effects of the dispute and in ...

Popular Real Estate Questions