I am attempting to draft a payment clause for a land contract and am unfamiliar with “interest-only payments”. Are these a good idea for the seller? Why is the buyer seeking to do this (what is the advantage?)

The situation is Seller has 17 acres with a house on the property and Buyer has agreed to pay $48,500 per acre for a total of $824,500.00 plus interest at a rate of seven and three quarter’s percent (7.75%). This is a five year land contract with quarterly “interest-only” payments. There is a down payment of 10%, or $82,450.00 and a $5,000 deposit that will be applied toward the purchase price for a total of $73, 7050.00 remaining to be financed.

Any comments or suggestions (to include drafting language for the payment schedule) would be appreciated.
Dan
danielpmarsh@comcast.net