An interest-bearing mortgage is one where you only pay interest for the first few years of the loan, as opposed to your payments including both principal and interest.
Interest-only payments can be made over a period of time, can be provided as an option, or can continue for the life of the loan (obliging you to repay everything at the end).
Usually, interest-bearing loans are structured as a special type of mortgage with a floating interest rate.
While interest-only mortgages mean lower payments for a while, they also mean you don’t build capital and mean a big jump in payments when the interest-only period ends.
2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years.
An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash.
A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property.
The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid.
An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home.