What feature allows a consumer to only pay interest on a mortgage during a set period?

The feature that allows a consumer to only pay interest on a mortgage during a specific period is interest-only payments. This type of mortgage structure allows borrowers to pay just the interest for an initial period, typically ranging from a few years up to 10 years, without having to pay down the principal balance of the loan.

During the interest-only payment period, the monthly payments are lower compared to traditional amortizing loans since they do not include any principal repayment. This can provide temporary financial relief for borrowers who expect their income to increase in the future or who may be looking to invest in other areas while managing their cash flow.

In contrast, amortizing payments mean that borrowers are paying both principal and interest each month, leading to the gradual reduction of the loan balance. Fixed-rate payments indicate that the interest rate remains constant throughout the life of the loan, but they typically also include both principal and interest payments. Adjustable-rate payments involve changes in the interest rate over time, which can lead to fluctuations in payment amounts but does not specifically refer to only paying interest. Thus, interest-only payments are clearly identified as a unique option that directly addresses the question.