A loan has a rate of 6 or 30 years with a payment of $1,400 per month for the first five years and a payment of $1,800 per month for the remaining 25 years. This is an interest-only option fixed-rate.
An interest rate mortgage is a type of mortgage in which the mortgagee (borrower) is required to pay only interest on the loan for a specified period. The principal is repaid either in one lump sum or in series at a given time.
"Lower interest rate than a fixed rate loan, but the first term is a fixed rate. For example, 7 or 10 years, so you can make lower payments than a 30 year fixed rate fully amortized loan."
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