From what I understand about mortgages, which isn’t a lot at all, I just don’t see any scenario where an interest only mortgage is a good idea.
You pay it off for let’s say 20 years and you still have the full balance remaining. What am I missing?
In: Economics
There is nothing preventing you from paying it off on the normal amortization schedule. So if you have variable/unpredictable income, you can get an interest only mortgage and treat the interest payments as your floor of how much you need to pay. In lean months or years you may be able to pay that much but not a regular mortgage’s monthly payment, in better months or years you can pay down the principal.
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