Interest only mortgages are home loans that typically allows you to pay only the interest for a set period of time, most are between 3 and 10 years, and these types of loans allow the borrower to pay lower monthly payments and qualify for higher loan amounts. Often when the loan period has ended the loan balance is reamortized to pay in full within the remaining period of the amortization. When certain criteria are met lenders may convert the home loan to a fixed or adjustable rate mortgage.
