Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of deferring your interest is that the buyer ends up owing more than the original amount of the loan. Also called Negative Amortization.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). deferred interest. Retrieved September 22, 2026, from http://smartdefine.org/deferred_interest/definitions/1151715 |
| Chicago | Barry Goldsmith. 2010. "deferred interest" http://smartdefine.org/deferred_interest/definitions/1151715 (accessed September 22, 2026). |
| Harvard | Barry Goldsmith 2010, deferred interest, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/deferred_interest/definitions/1151715>. |
| MLA | Barry Goldsmith. "deferred interest" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/deferred_interest/definitions/1151715> |