Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Interest-Only Terms

HUD Housing Counselors Glossary

Updated 10-31-2026

Interest-Only Terms

An interest-only mortgage allows you to pay monthly payments towards only the interest accumulating on the amount you borrowed for a set time. Initially, this can result in lower monthly payments, but risks are involved. Over time, you must start paying the principal balance, increasing the monthly payments.

HUD Housing Counselors Glossary

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