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Deferred interest

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Deferred Interest Bond
Deferred Interest Bond definition :
A bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond. See: Zero coupon bond.

 


Deferred interest mortgages are usually marketed at times of high interest rates to young professionals whose salaries are expected to increase rapidly in order that they can meet the later interest payments over the rest of the mortgage term.

DEFERRED INTEREST - Occurs when your monthly payments are not large enough to pay all the interest due ...
DEFERRED INTEREST BOND - A bond that pays interest at a later date, usually in one lump sum, effectivel...

Deferred Interest Bond
A bond, such as a zero coupon bond, that pays interest and repays principal in one lump sum at maturity.
See: Current Coupon Bond; Zero Coupon Security
Deferred Sales Charge ...

Deferred interest bond
A bond that pays interest at a later date, ordinarily in one lump sum, effectively reinvesting interest earned over the life of the bond.
Deferred taxes ...

Deferred Interest Bond. A bond where interest payments are not made currently, but at a later date. Similar to a zero coupon bond which pays 'interest' and principal at maturity. The interest, in effect, is compounded and paid at maturity.

Tax-Deferred Interest - Interest received but not currently subject to income taxation.
Tax-Free Exchange - The non-taxable exchange of a non-qualified annuity for another non-qualified annuity, as allowed under IRS Code Section 1035.

Deferred Interest (in banking)
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Deferred Interest
The amount of interest that is added to the principal balance of a loan when the contractual terms of that loan allow for a scheduled payment to be made that is less than the interest due.

long-term, deferred interest Collateralized Mortgage Obligation bond, also called a Z-Bond, that pays no interest until all prior bonds have been retired.

deferred interest bond A bond that pays interest at a later date. deferred month The months in which futures trading is taking place, as apposed to the nearby month.

Negative amortization is also called deferred interest or accrued interest. With a Neg Am loan low or moderate income borrowers can afford to become homeowners.

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Sometimes called "deferred interest." It is explained in detail in How Does Negative Amortization on a Mortgage Work? Negative amortization arises most frequently on ARMs. See Should You Fear Negative Amortization and Is a 3.

The most distant months of a futures contract.
Deferred interest bond ...

This means the interest left over after the premium was paid accumulates on the loan. This is known as a negative amortization or deferred interest, because it is interest that has been earned and has not been paid.

See also: Banks, Fraud, Line of credit, Expense, Compensation

Business Deferred incomeDeferred interest bond

 
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