At the end of the loan term, the borrower must then pay off the entire principal of the loan in one lump sum. This can be a difficult task, especially if the borrower's original loan amount was large. nnOne way to prepare for this is to make extra payments on the loan throughout the interest-only period. This will reduce the amount that must be paid at the end, making it more manageable. Another option is to refinance the loan at the end of the interest-only period. This can provide additional time to repay the loan, as well as lower monthly payments. However, it is important to understand all of the terms of a refinance before signing on to one. Otherwise, you may end up with an even higher balance than you started with.nnUltimately, it is important to be aware of what will happen at the end of an interest only mortgage so that you can plan accordingly.