Roll Up Mortgage: You are charged interest just like any other mortgage or loan. The interest is not due to be paid back immediately, though. You do not make any interest payments as you go along. The interest is added to the outstanding balance of your mortgage instead meaning that the amount that you owe goes up every month. You get charged interest on this amount so you pay interest on interest, too. The amount that you have to repay at the end will be considerably more than you borrowed.
Tags: Roll Up Mortgage