Here’s the question…
“I am considering an interest-only mortgage. The payment will be less, that I know. Does that mean the rate is less…or is the payment less only because it’s interest only? But are there any other aspects of the mortgage I’m not aware of? It all sounds too good to be [...]

Companies who constantly peddled the interest only mortgage are now a being revealed as contributing to the mortgage crisis and the rise in foreclosures. Quicken Loans offered their version of the interest only mortgage stressing the “savings” over fully amortized options calling it a “Smart Loan”.
Ha!
Interest Only Mortgage - Are They Smart Loans?
Hardly! [...]

Interest Only Mortgage Defined
An interest only mortgage is a mortgage with a payment type that requires payments only of the interest due. In contrast, the fully amortized payment type requires both the interest and principal be included in the payment. That way you are paying the interest due and you are also paying [...]