non-traditional mortgage

Define: non-traditional mortgage

Definition: A non-traditional mortgage is a residential mortgage loan product that allows borrowers to defer repayment of principal and, sometimes interest. They include products such as “interest only” mortgages where a borrower pays no loan principal for the first few years of a loan, and “payment option” adjustable-rate mortgages (ARMs) where a borrower has flexible payment options with the potential for negative amortization.

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