Just for my own understanding, what exactly is meant by an 'interest only' payment? Basically that you pay all of the interest upfront at the start of your loan? I know that many companies, like for car loans, set the payment schedule to do similarly to this, where the first pmt is 70% interest, 30% principal, 20th is about 50/50, 59th is about 5% interest, 95% principal. But this sounds different... is there actually any benefit to the owner by doing an interest-only loan like that? If not, why do it?
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