mortgage

What is an exotic mortgage?

 

What is an exotic mortgage?

The Bankrate.com financial term of the day is: "Exotic Mortgage."

With the usual mortgage, you borrow the money and then you start paying it back -- with interest. An exotic mortgage shakes up the scenario in some way. For example, it might allow you to delay paying the principal and maybe even the interest, so you can buy more home than you might be able to afford right now.

Like many exotic animals, an exotic mortgage can bite. While the loans can help buyers get into higher-priced properties, there are risks for both the borrower and the lender.

To compare home loans, visit the Mortgage section at Bankrate.com.

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