Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
All of I
Interest Only Loan
Paying only the interest each month until the loan matures, usually 1 to 15 years, resulting in a lower monthly payment, with the
* principal balance (the amount you borrowed) unchanged. This means that none of the monthly payment is going towards the original loan unless you make a payment towards it. More about Interest Only Loans.
Glossary For This Page
(In Alphabetical Order)
* Principal
The amount of money borrowed or the amount of the loan that has not yet been paid back to the lender. This does not include the interest you will pay to borrow that money. The principal balance, sometimes called the outstanding or unpaid principal balance, is the amount owed on the loan at any given time.
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