This loan program carries a 30 year fixed interest rate with a 10-year interest-only payment period. With this program your interest rate remains fixed for the entire 30 year term of the loan. What makes it different from a standard 30 year fixed rate mortgage program is that for the initial 10 years the lender gives you the flexibility to only make an interest-only payment. If you made this payment during this time frame you would NOT make any progress towards paying back principal so the only way you gain equity is through property appreciation (which is never guaranteed). After ten years the remaining balance would then be amortized over the last 20 years of the loan. At that time unless you’ve made significant voluntary principal payments during the first 10 years your payments would increase.