How Does The Mortgagus Interest Only Loans Works?

Interest-only mortgages are loans secured by real estate containing an option to make an interest payment. You generally pay only the interest for a specified
period of time. This means your principle does not change.

If you have a mortgage of $200,000 at 6% fixed the interest only payment
will be $1,000 for a specified period of time. It could be 4,5,6 or 10 years
depending on the financial agreement you make.The principle does not
change, so you will still owe $200,000 after the interest only period.
Unless the property value increases on your home you will have zero equity.

Make sure you clearly understand all of the terms and financial conditions
of any type of mortgage before you sign on the dotted line.

Do your research and find out how amortization works.
Find out how points on a mortgage work.
Also research negative amortization just in case they try to talk you into
getting a negatively amortized loan.

I would also learn how the math works with mortgages and loans in general.
I believe Mathematics is very important, especially when it has to do with
your money.