He said interest-only loans were common in the 1920's, but rarely used again until the 1980's.

Homeowners should seek a lower rate or switch to an interest-only loan for a spell.

To keep his monthly payments down to $3,700, he is taking out an interest-only loan.

That sort of a population is still more likely to rally behind a less costly 10-year, interest-only loan.

Many people assume that an interest-only loan is a type of mortgage.

The jolt can be higher for people with interest-only loans.

Those who take out an interest-only loan, on the other hand, will face a monthly payment of only $2,083 during the same period.

With an interest-only loan, the same borrower could qualify for up to $600,000.

They wound up with a 10-year, interest-only loan that increased their mortgage payment by $1,700 a month.

There are, however, potential benefits for borrowers who take out interest-only loans.