HomeSite MapCompareFinanceDebtCasino Payment shockThe mortgage definition for Payment shock:Payment shocks are when the discount period ends and the monthly repayments jump by a large amount to match the Standard Variable Rate. You must be sure that you can budget for this in your monthly expenses. Similar MatchesAdditional principal paymentAdditional principal paymentExtra money included in the monthly payment to help reduce the principal and shorten the term of the loan. Annualised payment schemeAnnualised payment schemeAlthough the borrower pays interest at a variable rate, which can change from month to month, the lender charges a set amount of interest each month and then adjusts the balance at the end of the year. Balloon paymentBalloon paymentThe final lump sum payment due at the end of a balloon mortgage. Further SuggestionsEarly repayment periodLate payment Monthly repayment Mortgage payment protection insurance (MPPI) Overpayment Payment default Payment holiday Click to compare definitions of Payment shock Click to view definitions beginning pa |