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Is an interest-only mortgage a bad idea?
It seems you understand the risks, it seems like a fine enough idea.  Hopefully it works out for you. However, you may want to talk to a few local banks about getting a short term home equity loan.  I know someone who was able to do this getting a very low rate for 7 years.  At the time of the loan, the prevailing rate for a 15 year was 3.25, but they were able to get the HEL at 2.6 fixed.  There was no closing costs. The best part about it was the payment was not that much more.  While going from ~1200 to ~1800 is a 50% increase it was not that much in dollars in relationship to his household income.   Note that I did not say Home Equity Line of Credit, which are vairable rates and amount borrowed.