interest payment on a loan
111Accrued interest — The accumulated coupon interest earned but not yet paid to the seller of a bond by the buyer (unless the bond is in default). The New York Times Financial Glossary * * * accrued interest accrued interest ➔ interest * * * The interest accruing… …
112default interest provision — A provision in a contract which: • Provides a contractual sanction against non payment of a sum of money; and • Is a form of liquidated damages for that non payment. A default interest provision is nearly always included in an agreement where… …
113Endowment Loan — A type of mortgage in which the borrower makes only interest payments on the mortgage, while payments that would have gone to repay the principal are instead funneled into an endowment fund. Under an endowment loan, the borrower does not repay… …
114graduated payment mortgage — ( GPM) A mortgage in which the monthly payment of principal and interest begins at a low amount and progressively increases to a predetermined higher amount. Thereafter, the amount of the monthly payment remains constant for the remaining life of …
115Revolving Loan Facility — A financial institution that allows the borrower to obtain a business or personal loan where the borrower has the flexibility to decide how often they want to withdraw from the loan and at what time intervals. A revolving loan facility allows a… …
116Wrap-Around Loan — A loan that is most commonly used with property with an outstanding loan. The seller lends the buyer the difference between the existing loan and the purchase price. The buyer s periodic loan payments are sufficient to repay the existing loan as… …
117bullet loan — A name occasionally used to describe a promissory note used for transactions that do not require any principal to be repaid until the maturity of the note. Interest is usually due periodically prior to maturity. Most often used to describe loans… …
118Second Chance Loan — A type of loan associated with subprime lending and borrowers with a tainted credit history. Second chance loans offer a borrower a chance to rebuild their credit history. Although subprime loans might have a typical term to maturity (30 years of …
119Take-Out Loan — A type of long term financing (usually) on a piece of real property. Long term take out loans replace interim financing, such as a short term construction loan. They are usually mortgages with fixed payments that are amortizing. Take out loans… …
120bullet loan — A loan in which the whole of the principal is repaid in a single final payment known as a bullet, although interest may be paid in interim payments. Compare: amortizing loan …
