An Interest Only Mortgage requires that only the interest portion of the payment be submitted, this means that the principle balance remains the same. An interest only mortgage loan offers you greater purchasing, reduced qualifying income, maximizes your cash flow, and also offers a significant monthly payment reduction compared to a conventional mortgage.

Fixed Rate Mortgage vs. Interest Only Mortgage Calculator

With an interest only mortgage you are paying the lowest possible interest rate on your mortgage loan at the current time. You can actually build equity faster with an interest only loan with direct principal reduction. 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
One Month Libor Loans                         3 Year Interest Only ARM
Three Month Libor Loans                      5 Year Interest Only ARM
Six Month Libor Loans                            7 Year Interest Only ARM
One Year Libor Loans                            10 Year Interest Only ARM

More information on Libor Loans

More information on Types of Mortgage Loans

More information on Fixed Rate Mortgages

More information on Adjustable Rate Mortgages