The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

PRINCIPALONLY (PO) STRIP Definition & Legal Meaning

Definition & Citations:

A mortgage that pays its principal from the securites. The price goes down as interest rates raise causing a slower repayment. The interest coupons are paid to investors in the interest only strip. There is less cash flow because the interest coupons do n

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