Only Debt is House, But Interest Only?
Is it a good idea to ever consider an interest-only loan?
ANSWER: Interest-only is a horrible mortgage. You can think that you’re going to pay extra toward the principle, but the FDIC says that 97% of people do not pre-pay on their loans. That’s almost everybody! When you have an interest-only loan you end up only paying on the interest, which is a great way to be in debt for the rest of your life!