Mortgage loans generally come with a repayment term of 15 to 30 years. However, mortgage loans can also be extended to a term of 40 to 50 years for young individuals who are unable to pay high monthly installments. Many mortgage loan providers have come up with a variety of flexible payment options to encourage buyers to invest in real estate. In California, there are mortgage loan providers that offer interest-only home mortgage loans. This form of loans is gaining immense popularity in upscale housing markets.Many homeowners are unable to pay high monthly installments in the first few years after purchasing a home. Homeowners opting for interest-only mortgage loans, pay only for the interest of the loan in the initial period. As a result, the monthly installments are very low. Mortgage interest, which is applied on the principal amount, is governed by various factors such as term of the mortgage, type and location of the property and credit rating of the borrowers.Interest-only loan providers generally offer these loans for a period of three to ten years. These loans are also popular among homeowners with poor paying habits. Homeowners who are expecting an increase in their income in future also opt for this loan. Many homeowners who lack a steady form of income can also benefit from this type of loan.It is important to verify other forms of loans provided by mortgage companies as the homeowners pay only the interest, keeping the principal loan amount intact. Over the years, homeowners end up paying a huge amount of interest as compared to other traditional loans. Many financial experts consider this loan as a high-risk loan as homeowners may end up paying much more for a house than its actual price in case property prices go down.Homeowners generally procure interest only loans in combination with a mortgage insurance as California is prone to earth quakes. It is advisable to consult with a good financial expert to weigh the pros and cons associated with interest-only home mortgage loans in California.