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Great Directory of Link Partners from around the GLOBE...

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This Section, Resource Partners Section 8, features interesting websites across the entire internet.

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Most Americans assume it's always best to pay down their mortgages as quickly as they can. But in a lot of cases that's not always true; indeed, that's the whole idea behind an interest-only loan.

For the uninitiated, interest-only mortgages work like this: First, the borrower takes out a 30-year mortgage, electing to pay only interest for a set period of time, such as five, 10 or 15 years. After that, the monthly payments readjust to include the principal, amortized over the remaining years of the loan. This can cause the monthly payments to rise substantially.

The advantage of an interest-only loan is that it allows a borrower to free up capital to invest in assets that yield the highest return, or serve some particular financial-planning purpose, rather than locking it up in a house. For example, you could take the money you'd be paying in principal each month and invest it in the stock market. Or, you could set it aside to help pay for a child's college fund.

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