Not only do they have them BUT many "Interest Only" loans DO NOT EVEN REQUIRE PAYMENTS WHICH COVER THE INTEREST!
THE UNPAID INTEREST IS ADDED TO THE PRINCIPAL EACH MONTH!!!
Just when I thought I'd heard everything.
If you know that going in, that’s one thing. Too many didn’t either out of ignorance or bad/deceptive marketing.
There is a place for a negative-amortization loan. That place is for investors who have a LOT of net worth and are leveraging their money.
They’re NOT for Joe and Jane Smith living paycheck to paycheck or barely better than that.