Interest only mortgage loans are a relatively new option for the average home purchaser. They were designed to offer low payments, since there is no principal being repaid, while offering the choice to make lump sum payments against principal when additional cash is available. An interest only mortgage is ideal for someone who receives periodic lump sum income.

With an interest only mortgage, payments are low every month, making it easier for those on commission, for example, to handle the payments and still have an opportunity to pay against principal in the months where commission is higher or when a bonus is received.

An interest only mortgage is not for everyone but it is an excellent money management tool in the right situation. It