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She chose an endowment mortgage so her monthly payments covered only the interest while a separate investment matured to repay the loan principal.
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She chose an endowment mortgage so her monthly payments covered only the interest while a separate investment matured to repay the loan principal.
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Related words
endowment mortgage
Noun
(finance)
A
type
of
mortgage
(typically
a
loan
to
buy
a
house)
where,
over
the
term
of
the
loan,
the
borrower's
regular
payments
to
the
lender
cover
only
the
interest
charged
by
the
lender.
At
the
same
time,
the
borrower
makes
regular
payments
into
a
separate
savings
or
investment
plan.
When
this
plan
matures,
the
borrower
uses
the
proceeds
to
repay
the
principal
of
the
loan.
Contrasted
with
repayment
mortgage.
Japanese Meaning
住宅ローンの一種で、借入期間中は利息のみを支払い、元金部分は別の積立や投資で準備して、満期時にその資金で返済する仕組みのローン。
Related Words
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