Interest-only mortgages?

Interest-only mortgages are peddled aggressively today by lenders, institutions and brokers, but they're not advisable for everyone. An interest-only loan may work for you if: -your income is mainly in the form of sporadic commissions or bonuses -if you are likely to make a more money in the near future -if you will invest the savings on the difference between an interest-only mortgage and an amortizing mortgage, and confident that the investments will provide a better return. -Professionals advisers don't recommend interest-only mortgages to regular salary employee's who take out moderate-size mortgage loans and don't have a plan for better returns. -With an interest-only mortgage loan, your stuck paying only the interest on the loan in monthly payments for a fixed number of years. After the end of that loan, usually five to seven years, you either refinance, pay the loan off in a lump sum, or start paying off the principal, in which case the payments will be greatly enhanced. -Business owners with unpredictable saleries might work well from interest-only loans, because "they need to utilize their cash flows as much as possible, and this is a suitable way of doing it,". And you always have the option of paying down principal of the loan whenever you want. -interest-only loans were for usually for wealthy borrowers The concept is that an interest-only loan program allows you to buy more houses than one can afford. These loans appeal to the younger borrowers who have a future of increased income in the comming years... and want to utilize this program to jump start on thier home purchase.