This is the way I saw it when we were debating: We only are required to pay XXX amount monthly which equals only the interest (obviously). We have a set interest rate for 7 years, after that, we get a new rate every 5 years and it is capped at a certain percent (can't think of it off the top of my head). Either way, if you ONLY pay the interest and move before you pay the principle at all, you get NO equity, however, you can pay on the principle at any time. So what we're doing is paying the entire interest payment each month PLUS putting extra $ towards the principle, that way we obtain equity but we have the option of how much we want to go towards our principle. I like it but thats just me :dunno: