How would you like a mortgage that either significantly lowered your monthly payment or allowed you to buy a lot more house?
An interest-only mortgage can do either, and lenders increasingly are touting them as the answer to many borrowers' prayers. Whether these loans turn out to be a blessing or a curse, though, depends a lot on who's doing the borrowing:
- If you're a disciplined investor, good with money, a bit of a risk-taker and not buying more house than you can handle, an interest-only mortgage could work for you.
- If you're not all of those things, you probably want to stick to a more plain-vanilla mortgage.
"It's a bad idea for someone who can barely afford the house they're buying," said Brad Blackwell, national sales manager for Wells Fargo's West Coast mortgage operations. "If you're using the extra money to put food on the table, it's better to get a (more conventional) loan."
No comments:
Post a Comment