We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.
An interest-only mortgage is a loan with scheduled payments that require you to pay only the interest for a specified amount of time.
The amount that you owe on the loan does not go down with each payment. Once the interest-only period ends, you may have several options:
Paying off the loan balance all at once
Refinancing the mortgage loan, if refinancing is available
Beginning to pay off the balance in monthly payments, which are higher than the interest-only payments
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