Interest only mortgages

An interest-only mortgage is a type of loan in which the borrower is required to pay only the interest on the loan for a certain period. Usually five, seven, or 10 years. Interest-only payments may also be made as an option or may last throughout the duration of the loan. The principal is repaid either in a lump sum at a specified date, or in subsequent payments. These loans are good for borrowers with irregular income, as it allows the borrower to make low minimum payments during times in which income is low and larger payments when income is higher.