Scary Mortgages
I was reading an article in the LA Times the other day about a man who has a mortgage that lets him choose how much he pays every month. $2513 would cover principal and interest, $2279 would cover interest only and $1106, well, it lets him stay in his house. The man in question chooses the cheapest option every month and unfortunately is digging himself a deeper and deeper hole every month. When considering financing options on what will probably be the most significant asset in your portfolio, it is absolutely imperative to get sound advice. I talked to Tyler Chandler of The Mortgage Group and he is not aware of "pay option" loans in Canada, but he did bring up interest-only loans as ones to be aware of. Sure they have their place and are suitable in the right circumstances but make sure you are getting the full picture before you choose to go down that road.