miOaklandCounty.com

From Business Week:

“Thirty-one percent of new single-family mortgages were interest only last year, up from just 1.5% in 2001. With interest-only mortgages, buyers’ monthly payments are lower for a time, but they don’t build equity in their home.”

From Maureen:

That is not exactly correct. Homeowners with interest-only mortgages can build equity if the home appreciates in value over time, even without reducing principal owed to the bank.

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Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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