What are interest-only mortgages?
Interest-only mortgages are usually adjustable-rate mortgages that allow you to make interest-only payments for a certain period of time, usually five to ten years. After this period ends, your required monthly payment will include interest and principal. If you make interest-only payments for the duration of the initial period, the loan’s principal will remain unchanged when this term expires. In other words, you will still owe exactly what you borrowed when the interest-only period expires. Examine the interest rate facts before you sign anything.
