> If you bought a house for $10.00 and paid $100.00/month, it'd still be worth it even if none of that went to the principal. Heck, even if your house became wo

> If you bought a house for $10.00 and paid $100.00/month, it'd still be worth it even if none of that went to the principal. Heck, even if your house became worthless too, it'd still be worth it! Paying off an interest only loan on a property may well be better than renting but it’s more like renting than paying principal + interest. When you pay off an interest only loan your “rent” costs are your entire mortgage payment. When you’re paying principal + interest the “rent” is still only the interest portion of your payment. In both cases you keep pace with the market better than if you’re renting. If the only way you could avoid renting were to get an interest only loan then that’s certainly a better option. > Is there a reason to believe that it's a net benefit regardless of the interest rate? Yes renting is objectively the worst possible financial situation regardless of interest rate (definitely true in Australia, possibly true elsewhere as well).