What Does Deferred Principal Mean

Deferred Principal means any amount of principal due to the Lenders (other than any Affected Lenders) under the Loan Agreement and the Notes, the payment of which is deferred pursuant to Section 2.10(b) of the Loan Agreement.

What happens to deferred principal?

Incremental Deferred Interest Mortgage If a borrower chooses to exercise their deferred interest rights and pay the lower balance, then the payment will cover the principal and some interest. The excess interest is then added to the total balance of the loan.

What does principal and interest deferred mean?

A deferred interest loan postpones interest payments till after a certain period of time. … Mortgages can also include deferred interest options, in which the unpaid interest is added to the principal balance of the loan, also known as negative amortization.