A bank contractually grants the debtor the right not to start servicing the loan until some time later; in other words, no repayments and interest are due initially. Such tempting newcomer conditions were particularly common in the U.S. real estate market and are considered to be one of the main reasons for the subprime crisis. A debtor is granted the right to make payments due now at a later date. – See amortization, negative, arrangement, arrosation, balloon loan, loan-to-value, first-rate default clause, real estate prices, mortgage equity withdrawal, remission, subprime crisis, interest deferral, two-twenty-eight-
Credit.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/