Although by reading the name of this loan a layman would try to stay a far away from it because as the name suggests, an interest only mortgage allows you to make installments of only the interest the principal amount will always remain the same. Such a loan is usually acquired by real estates and contain the option to make an interest payment, primarily people prefer these loans because it tends to reduce their mortgage payments substantially; nonetheless Interest-only mortgages aren’t for everyone due to complexity attached to them.