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Glossary of Mortgage & Repossession Terms - E

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Endowment Mortgage

An interest only mortgage with an endowment policy assigned to it. The borrower normally pays only interest during the term of the mortgage and pays separate premiums into an Endowment Policy that is designed to repay the mortgage at the end of the term, although not guaranteed. The Endowment Policy also provides life insurance to repay the loan if the borrower dies. See also Low Cost Endowment.

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