Usually, your mortgage payments go toward both your interest costs and your loan balance. Year after year, you keep up with interest charges and gradually eliminate the amount of debt owed.
The main difference with an interest-only loan is that you would only pay the interest on the loan, not the principal. This results in lower monthly payments for a fixed period. However, you’re required to pay off the full loan either as a lump sum or with higher monthly payments that include principal and interest.