GLOSSARY 579

GLOSSARY 579

INTEREST EXTRA LOAN — A loan in which a fixed amount of principal is repaid in installments along with interest accrued each period on the amount of the then outstanding principal only. INTEREST ONLY LOAN — A straight, non-amortizing loan in which the lender receives only interest during the term of the loan and principal is repaid in a lump sum at maturity. INTEREST RATE — The percentage of a sum of money charged for its use. Rent or charge paid for use of money, expressed as a percentage per month or year of the sum borrowed. INTERIM LOAN — A short-term, temporary loan used until permanent financing is available, e.g., a construction loan.