An Interest-Only Mortgage gives you the option to pay just the interest on your loan for a set period—usually the first few years. During this time, your monthly payments are lower because you’re not paying down the loan balance. Once that period ends, the loan shifts into a standard repayment structure where you begin paying both principal and interest. This type of loan can offer flexibility and breathing room early on, but it’s important to plan ahead for the full payments once they begin.