Sorry, my mistype. You are correct. Meaning “interest only loans”. THanks RR for the correction.
No problem. Interest-only loans can be a useful financial tool if you wish to leverage your capital and earn more than the interest you’re paying. Not without risk, but if you can afford to take the risk you can afford the interest only loan. They are only an issue when people were using them as the only means they could hope to afford the home. When it came time to pay the piper they couldn’t make the “normal” amortized payment.
“exotic” loans aren’t meant so Joe Janitor could buy a half-million dollar house. They were intended for the CEO of Joe Janitor’s company to leverage his capital.