Zero-Coupon Mortgage - Definition

A mortgage in which all Principal and interest are deferred until Maturity. All interest that accrues is rolled into the principal, which is payable in a lump sum. A zero-coupon mortgage may be beneficial for a business property in which cash flow is expected to be low for the foreseeable future, but in which the value of the real estate is expected to increase. The Owner in this case could refinance the mortgage at maturity with more valuable real estate securing the loan.



Terms near "Zero-Coupon Mortgage"

Zero-Floor Limit
Zero-Investment Portfolio
Zero-One Integer Programming
Zero-Rated Goods
Zero-Sum Game
Zero-Volatility Spread (Z-Spread)
Zeta Model
Zig Zag Indicator
ZMK
Zombie Bank
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