Blended Payment refers to a mortgage payment, which consists of both the interest and principal repayment. It is a loan repayment scheme, where portion of money received by the borrower is utilized in principal and interest repayment.

Facts about Blended Payments:

It is an excellent solution, when a borrower is faced with infinite mortgage products and endless market fluctuations. It allows fast equity build up, and eases mortgage repayment by the end of the contracted amortization period. Since there is a combination of both principal and interest component in the mortgage payments made by the borrower, the rate of interest charged will automatically decrease.

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