Deferred Interest Mortgages

Definition of "Deferred interest mortgages"

Heike Sommer-Goldschmitz real estate agent

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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.

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