California Borrowers, with an interest-only mortgage, monthly payments are lower because the borrower is only paying off interest, not principal during the early years of the loan.  We all know the climbing prices can impact affordability, with a California interest only mortgage the borrower can make lower monthly payments, typically five to seven years.  According to the National Association of Realtors, housing prices were up approximately 11 percent nationwide last year.  According to the U.S. Census Bureau, between 2000 and 2003, the values of homes in California the increase was 46 percent.

Fixed Rate Mortgage vs. Interest Only Mortgage Calculator

Also note, any amount you pay each month that exceeds your interest only payment will apply toward principal.  A popular interest only mortgage is a Libor Mortgage Loan. Libor Loans

Common Interest Only Mortgage Loans