Interest-Only Mortgage

An interest-only (IO) mortgage lets the borrower pay only the interest for an initial period — usually 5, 7, or 10 years — keeping monthly payments lower. Principal stays unchanged during the IO period. Once the IO period ends, payments jump to a fully amortizing schedule on the remaining term.

IO is a non-QM product used by high-income borrowers managing cash flow, investors optimizing returns, and crypto-backed borrowers who want to minimize debt service while the loan exists. The risk is payment shock when amortization starts — and no equity built through principal reduction in the IO window.

Why it matters for Milo customers

Milo's crypto-backed loans (not mortgages) are typically structured as interest-only with a balloon at maturity. This minimizes monthly cash outlay while crypto collateral does the heavy lifting.

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