Zero-Coupon Mortgage

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Zero-Coupon Mortgage is a type of mortgage primarily used in the financing of business properties wherein the principal and interest are deferred until maturity and all interest that accrues is rolled into the principal, which is payable in a lump sum. This type of mortgage is generally useful for a business property with low cash flow expectations for a foreseeable future, but where the real estate value is expected to rise.

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