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applying for a mortgage

What Is an Interest Only Mortgage?

Interest only mortgages can make your payments very low -- at least upfront.


Aug 29, 2021 by Aly J. Yale

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PROS CONS
Low payments for the first few years of the loan Payments jump significantly after the interest only period
Good if you expect your income to grow in the future Usually come with adjustable interest rates
Can help you buy a home faster Takes a long time to build equity

Data source: Chart by author.

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