Add on interest


 

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Add on Interest

A method of charging interest usually used in the financing of automobiles, but not generally used in real estate financing. Interest is computed on the total amount borrowed and added on to the principal. Each payment is then deducted from this total amount. Interest on real estate loans is usually figured based on the balance owing after each payment is made (declining balance).

Add on interest

The interest a borrower pays on the principal for the duration of the loan.



Add on interest

Similar Matches

Amortizing interest rate swap

Amortizing interest rate swap

Swap in which the principal or notional amount rises (falls) as interest rates rise (decline).


Compound interest

Compound interest

The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan.


Open interest

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The net amount of outstanding open positions, either long or short, in a given futures or options contract.


Future Interest

Future Interest

A present interest, but only a future right to possession and enjoyment of the land, such as a remainder interest, reversionary interest, etc.


Nominal interest rate

Nominal interest rate

The interest rate actually observed in the market, in contrast to the real interest rate.


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