Earn $25 CASH per qualified ChartSnap Founder referralUnlimited referralsNo purchase required—Join the Affiliate Program →

Mortgage Glossary

Interest-Only Mortgage

Mike Starr·Reviewed August 2026

An interest-only mortgage allows borrowers to pay only the interest for a set period (typically 5–10 years), with no reduction in the principal balance. After the interest-only period, payments increase to cover both principal and interest. These loans can lower initial payments but carry risk if home values drop or rates rise.