Definition of Nontraditional mortgage:
A type of mortgage that is not traditional in that it may not require a high down payment and/or a compounded interest rate. Examples of nontraditional mortgages can include mortgages that are interest only or subprime mortgages.
A nontraditional mortgage broadly describes mortgages that do not have standard conventional characteristics. These can refer to any type of mortgage that doesn't conform to a standard amortization schedule or have standard installment payments.
Nontraditional mortgages often come with higher interest rates because of the higher payment risks associated with the loan. Examples include balloon loans, hybrid ARMs, or interest-only mortgages.
How to use Nontraditional mortgage in a sentence?
- These mortgages may come with higher interest rates because of higher payment risks associated with the loan.
- In a nonstandard mortgage, borrowers may be able to defer principal and, in some cases, interest payments until the full balance is due.
- Nontraditional mortgages do not contain conventional characteristics of a mortgage such as an amortization schedule or standard and fixed installment payments.
- Balloon and interest-only loans, hybrid ARMS, and payment-option adjustable-rate mortgages are examples of nontraditional mortgages.
Meaning of Nontraditional mortgage & Nontraditional mortgage Definition