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What Is an Interest-Only Mortgage? - Financial TermsWhat is an interest only mortgage? With an interest only mortgage, you only pay back the interest each month on the money you've borrowed. With an Interest Only mortgage, your monthly mortgage payments only cover the interest and don't go towards repaying the original amount borrowed. An interest only mortgage is one where your monthly payments only cover the interest charged on the amount you've borrowed. This means your monthly payments.
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