by : Matthew Richenthal

Financial times are tough. Just take a look at gas prices. As potential homeowners consider the type of mortgage that would fit most snugly into their bank account, many look toward interest-only . But are these really helpful fiscal options?

Here's a quick rundown of such mortgages:

- Faced with rising housing costs, individuals hoping to keep their monthly payments down consider interest-only loans. Just think about that name for a minute, however. Those with a conventional mortgage pay off interest AND principal with each payment - meaning they're actually moving toward owning their property. However, an interest-only Florida home loan does NOT include princical payments. Your initial bills are, therefore, very low.

So what's the problem? Why isn't this an ideal ?

Because they are too short sighted. When the pre-determined interest-only period ends, payments will sky-rocket. In essence, this is a course of action that simply defers significant bills without building any sort of equity. If you're sure you'll be coming into money in a few years, then this could be the way to go in order to get the mortgage ball rolling. Otherwise, look into a 5/1 ARM or other home loan possibilities.