Interest only loans may have been one of the contributing factors to the mortgage crisis in the late 2000s, but that was because lenders were not doing their job in vetted out people that were applying for the loans. As a tool to help people afford their dream house an interest only loan is a reasonable option to use. The key is to have the right expectations and that comes with knowing what you are getting into. That's why building out the year by year or amortization schedule will help you model your payments.
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