Definitions for "CAPITALIZING INTEREST"
Having interest payments added to the principal amount borrowed rather than paying them as they become due in the period between assumption of a loan and its repayment period, thereby adding significantly to the monthly payment during the repayment period.
Computed interest that is added to the principal to arrive at a new principal balance. Interest is then assessed on the new principal balance.
Having interest payments added to the principal amount borrowed rather than paying them as they become due. This increases the principal and thereby adds significantly to the monthly payment during the repayment period.