Mortgage

QWhat Is The Drawback Of An Interest-only Loan?
AThe biggest drawback is that you will have to pay the entire principal at some point, usually five years. After that they convert to an amortized loan that is repaid by the end of the loan term. This can, however, work to your advantage if you think you are going to sell your home after only a few years. Consult your lender and your tax advisor.