Interest Only

An "interest-only" mortgage allows you to pay only the interest on the money you borrowed for the first few years of the mortgage. This is known as the "interest-only period" (for example, the first five years of the loan). If you only pay the amount of interest that's due, once the interest-only period ends:  You will still owe the original amount you borrowed, and your monthly payment will increase - even if interest rates stay the same - because you must pay back the principal as well as interest. Ask your lender what the payments on your loan will be after the end of the interest-only period.