One of the modern tools in the real estate mortgage is the limited period interest only mortgage loan. Most of the interest only mortgages are not viable for banks for the full term of the real estate mortgage, so usually, the interest only period will last for five to ten years. At the end of the allotted interest only period, payments will go up because of the addition of the principal in the monthly installments.
The problem with this is, because the mortgage holder has paid no substantial principal for all those years, when they begin to play the full mortgage payments on the real estate the monthly amount payable will be considerably higher, because they now have five or ten years less of the mortgage life, to complete repaying the principal loan amount.
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