If you are making interest only payments during first year make sure that you can afford full payments within a year or two. If you are expecting a significant raise in your salary, an inheritance, or some other type of cash windfall, then this type of loan can be an option.

These loans are very rare Interest only mortgages are very rare in today’s economy. They were heavily abused in past by consumers who bought homes that they really could not afford and predatory lenders who brought customers into home ownership market before they were fully prepared to handle financial responsibility.

Best for professionals who expect a lot of cash very soon Unless you are a young professional such as a medical student, law student or graduate student who can expect a significant raise in their salary when your schooling is complete, talk to your mortgage broker about any alternatives to this type of home loan.

Try at least two lenders to get a fair picture of your status Get a mortgage quote from at least two potential lenders. This will help you to get a more accurate picture of maximum amount that you can receive from a lender. Once you have that settled, you can start to narrow down types of homes and neighborhoods that you can afford.

You can search for lenders online To get started, go to any major search engine and type in “mortgage quote” and you will get some very good results. Sort through listings and find a site where you enter some basic information and get quotes from multiple lenders.

If you’re not sure that you want to start looking on your own, you can consult a financial planner, mortgage broker, real estate agent or any other type of Real Estate and Finance professional and they can point you in right direction.