Interest only mortgage rates are quite appealing, and this type of mortgage is very popular due to the benefits it offers. Basically, with an interest only mortgage, your monthly payments will be of only the interests, not the capital. This way, you reduce your payments in a great amount. The disadvantage is that once you pay off the interests, you still owe the capital. Furthermore, if you do not draw a fixed mortgage, interest only mortgage rates are likely to increase.
A further drawback to this kind of mortgage is that, no matter how low interest only mortgage rates are, at the end of the term you'll still have to pay the capital. Still, many people are lured in by low interest only mortgage rates.