A mortgage loan that would allow a borrower to pay less than the full interest accrued on the debt over the first few (typically five or ten)years of the mortgage could be called

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This type of loan is commonly known as a negative-amortization mortgage, or neg-am mortgage for short. While the borrower is making payments during the first few years of the mortgage, the payments are not enough to cover the full amount of interest that is accruing each month. As a result, the unpaid interest is added to the principal balance of the loan, leading to an increase in the overall amount owed. While these mortgages can be attractive to some borrowers because they offer lower initial payments, they can also be risky because the borrower's debt can actually increase over time instead of decrease.

A Mortgage Loan That Would Allow a Borrower to Pay