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HUD & FHA Glossary

Content tagged with: Interest-Only Fixed Rate Loans

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Nov 22, 2018

What is Leverage?

Leverage is an investment strategy using borrowed money to finance assets and increase returns. It can also refer to the amount of debt used in financing an asset.

Nov 22, 2018

What is an Interest-Only Fixed Rate Loan?

An interest-only fixed-rate loan is a fixed-rate mortgage which the borrowers pays only interest and nothing towards the principal. When it comes to HUD 221(d)(4) loans, interest-only fixed-rate loans are offered during an up to 3-year period during the construction or substantial rehabilitation of a property.

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