interest-only

interest-only
interest-only UK US adjective BANKING, FINANCE
used to describe a loan for which you only have to pay interest, so that you are not paying back the money borrowed: »

interest-only mortgages


Financial and business terms. 2012.

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  • interest-only strip — ( I/O) A form of stripped mortgage backed security ( MBS) that only passes interest payments received from the underlying mortgage loans to the security owners. May be a real estate mortgage investment conduit ( REMIC) tranche. American Banker… …   Financial and business terms

  • interest–only option — see option 4 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • interest-only strips — UK US noun [plural] (ABBREVIATION IOs) FINANCE ► the interest payments on bonds and mortgages (= loans to buy houses), sold and traded separately from the principal (= amount originally lent) …   Financial and business terms

  • Interest-only loan — An interest only loan is a loan in which for a set term the borrower pays only the interest on the principal balance, with the principal balance unchanged. At the end of the interest only term the borrower may enter an interest only mortgage, pay …   Wikipedia

  • Interest-Only ARM — An adjustable rate mortgage (ARM) with an initial interest only payment period. During the interest only period, only the calculated interest must be paid; no principal must be repaid. The length of the interest only period varies with each… …   Investment dictionary

  • Interest-Only Mortgage — A type of mortgage in which the mortgagor is only required to pay off the interest that arises from the principal that is borrowed. Because only the interest is being paid off, the interest payments remain fairly constant throughout the term of… …   Investment dictionary

  • interest-only loan — A loan in which payment of principal is deferred and interest payments are the only current obligation. Bloomberg Financial Dictionary …   Financial and business terms

  • Interest-only strip (IO) — A security based solely on the interest payments form a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop and the value of the IO falls to zero. The New York… …   Financial and business terms

  • Interest Only (IO) Strips — The interest portion of mortgage, Treasury or bond payments, which is separated and sold individually from the principal portion of those same payments. The periodic payments of several bonds can be stripped to form synthetic zero coupon bonds.… …   Investment dictionary

  • interest-only yield — See yield …   Big dictionary of business and management

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