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Interest Only Home Loans -- Are They Right For You? Interest-only home loans are a phenomenon that has been gaining strength and popularity over the last decade or so. The fundamental principle of an interest-only home loan is that the buyer is only responsible for paying the interest on the mortgage for a fixed period of time, often between five and seven years. This sounds fantastic until that interest-only period has expired and its time to pay off the principal, on which you haven’t made any progress since you signed the m...

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