Choosing an Interest Only Mortgage Option

The mortgage industry has exploded with new and interesting loans. One that looks fascinating at first is the interest only loan. This loan allows you to make only interest payments, not principle. This equates to a lower monthly payment, but it can be risky. The only way you will make money on your home is if it appreciates. This used to be a given and still is over long periods of time. In the short term, however, homes may not appreciate. In fact, we are seeing this now. In such a situation, you are gaining no equity on your home and the loan is not helping you.