Interest-Only Mortgages, have been popular for decades now due to the primary reason that they allow you to pay only interest for the first five, ten or thirty years of the loan, thereby lowering your monthly payment. Since the interest is paid on a monthly basis, it is an attractive proposition, especially if you are a looking to make a purchase and then repay it in the long run.

The shorter time period repayment options are extremely popular, across every strata of the society. Those who want to get a housing loan based on an interest-only mortgage would find a 5-year repayment option attractive for a variety of reasons. For one you would be able to own a house. Then comes the added advantage you could always opt for another house; or rather purchase another house, after the 5 year period. There is always the possibility that you may get bored with your present house. This is one of the reasons why a shorter repayment period is always attractive.

Businesspeople go in for 5 year interest-only mortgage loans for investing in business ventures which would bear fruition in the specific time period. Five-year interest-only mortgage loans are also popular among the younger lot. These interest-only mortgage loans have armed them with greater purchase power. People are buying houses at a much younger age than ever before. They are at the prime of their careers and earning well. Repaying over a five year period is not a difficult matter for this crowd. Moreover, in case they go in for a house, it is always an investment for their future.

Five year interest-only mortgages are also a better option over longer repayment terms because five years is a short period of time and you can predict fairly accurately your financial capabilities beforehand. For instance you may be able to gauge your career prospects better if you were to be asked to make a prediction 5 years down the line rather than 30 years down the line. This is another reason why they are so popular among the general public.