CassieNet News :: Thinking of getting a mortgage

Thinking of getting a mortgage :: RE: 40year mortgage

Author: jessica
Subject: RE:
Posted: Fri Aug 05, 2005 10:41 am (GMT 0)
Topic Replies: 5

Hi Jacob
Welcome to the forums.

A negative amortization on a 40 year mortgage is definitely not a good deal since you are facing a shortage of funds. Moreover if interest rates increase after some time, you will have to pay more and hence you will owe more than you have borrowed.

I would advice you to go for an interest-only mortgage. That will require you to pay low interests and at least reduce your monthly payments for a few years within which you can become financially stable. Then you can proceed to follow a repayment plan.

So you should shop around for the interest only home loan that you can afford to pay back.

Wish to receive your feedback soon.

Regards,
Jessica.

For the full story see:
http://www.mortgagefit.com/discuss/about90.html
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