fixed interest mortgage is one where the interest amount remains
constant throughout the loan period. Interest only mortgages are
mortgages where only the interest is paid during the life of the
loan. The principal becomes due at it the end of the life but
commonly it is then "rolled over" into a new loan.
valuation practice, a credit foncier loan is assumed even
though the actual loan may be a fixed interest loan. Opportunity cost
argues that it doesn't matter a great deal where the money comes from
or how it is paid. For example, if the developer uses his/her own
money instead of borrowing it, he/she will forego interest earned on
that money. Therefore, all complex financial arrangements can be
considered as being equivalent to the use of cash as long as the
interest rates charged or foregone equal or approach market rates.