What Is An Interest-Only Mortgage?
The process of focusing on paying interest first while paying down debt over time is called “amortization.” You’ll usually see interest-only loans structured as 3/1, 5/1, 7/1, or 10/1 adjustable-rate mortgages (ARMs). Generally, the interest-only period is equal to the fixed-rate period for adjustable-rate loans. That means if you have a 10/1 ARM, for instance, […]