direct reduction mortgage (DRM)
Definition
Mortgage loan in which at least a portion of each installment payment goes toward reducing the principal borrowed. In a DRM, interest is computed every month on the reducing principal balance resulting in a progressively smaller interest amount. Since the amount of monthly payment is fixed, the portion applied to the principal increases as the interest amount decreases.
direct reduction mortgage (DRM) is in the Banking, Commerce & Finance and Real Estate & Buildings subjects.
This content can be found on the following page:
http://www.businessdictionary.com/definition/direct-reduction-mortgage-DRM.html
email to a friend
print this definition
cite this definition
link to this page
