Interest-Only Loan

Example Definitions of "Interest-Only Loan"
Interest-Only Loan. A Loan which, by its terms, requires the related Borrower to make monthly payments of only accrued interest for the certain period of time following origination. After such interest-only period, the loan terms provide that the Borrower's monthly payment will be recalculated to cover both interest and principal so that such Loan will amortize fully on or prior to its final payment date.
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