I've got to say... I love my interest only mortgage. Added benefits to what afm has pointed out: You can have a checking account tied to it and draw out the equity like a revolving line-of-credit. My interest rate is set at prime. Some months I pay just the interest due and some months I pay huge chunks. I love the flexibility.
Also... there were no loan origination or closing fees, or an appraisal. That was pretty sweet. The paperwork amounted to just about the same as a consumer loan and financial statement.
All of these benefits add up to saving the homebuyer significant dollars, allowing them to buy more real estate than they'd otherwise be capable of.
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