[terry1156]

The Interest Only Loans aren't really "interest only" -- you just pay the interest (and not the principle) of the loan for the first few years. This make the payments a lot smaller at the beginning, but then you have to pay off the principle of the loan over a shorter perioed of time (ie 25 years instead of 30 years if the interest only portion of the loan was for 5 years)

What that means is that your monthly payment will dramatically jump once you hit that date.

Most people like these loans because they can buy more house than they could with a conventional loan. My opinion is that too many people buy too much more of a home than they need these days and that, along with credit cards) is what gets them into trouble. I think you should think long and hard before choosing that over a conventional loan.