An interest-only loan is a type of financing where the borrower only pays the interest on the principal balance at regular intervals until the loan reaches its maturity date, at which time the full principal amount becomes due. This type of loan does not require amortization during the length of the loan term.
An interest-only loan is a type of mortgage where the borrower is obligated to pay only the interest on the principal balance for a set period, usually between 5 to 10 years.
An open mortgage is a mortgage that has matured or is past its due date and hence remains open to foreclosure or repayment without any prepayment penaltiesat any time. It allows for flexibility for both the borrower and the lender.
