Offer your thoughts or opinion on the input financial query or topic using your financial background.

Is an interest-only mortgage a bad idea?
Generally, interest-only mortgages are a bad idea, because a lot of people get them so that they can buy more house than they could otherwise afford (lower payment = affordable, in their minds).  If the house continues to go up in value, they probably get away with it, because when the balance becomes due, they can refinance.  However, the last few years has shown how risky that strategy can be, and this kind of things is what cost a lot of people their houses. In your case, if the house is something you could afford on a regular 15 or 30-year mortgage, and you really are as disciplined as you say you are, you might get away with it.  But you have to take into account the risk, and consider what happens if there is a job loss or similar difficulty in the future. Another thing to consider is the term of the mortgage.  How many years will you get this lower interest rate?  Interest rates are at historic lows right now, and pretty much everyone thinks they're going up soon.  You might be better off locking in a higher rate for 15 years.