For 90% of the people using interest-only loans, they are essentially a very dumb, expensive, risky way to rent a house by substituting a bank for the landlord. For 5% of people, they are a great way to get into a house when it’s known that their salary will be increasing dramatically soon (soon-to-be doctors, lawyers, etc…) For the other 5% (wealthy, successful RE investors), they are an essential tool for maximizing leverage and reducing carrying costs. They are just a tool and unfortunately a lot of people have used them incorrectly…