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Oct 2
Understanding Consequences of Nontraditional Mortgages
Taffy Wagner October 2, 2006
Know More: Current News, Mortgages 2.0, Mortgages
More and more these days we are hearing about nontraditional mortgages. To me nontraditional mortgages come with a lot of risk and little to gain. Sure maybe for some they may think getting the house they are gaining, but truly you are not if you are dealing with a higher interest rate from the beginning, even interest-only mortgages where you are only paying on the interest for a while and no principal and the latest one a mortgage consultant told me about was the pick and pay ARM. The pick and pay ARM is where you choose how to pay each month. There is a lot to be said for traditional mortgage. There is a lot ot be said for knowing that your monthly mortgage payment is not changing, the interest rate is fixed and having peace of mind knowing that whatever happens with the market you can pay your mortgage.

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