From what I understand about mortgages, which isn’t a lot at all, I just don’t see any scenario where an interest only mortgage is a good idea.
You pay it off for let’s say 20 years and you still have the full balance remaining. What am I missing?
In: Economics
If you have a separate brilliant scheme to pay off your house price and then some at the end of the payment term, but you need the money right now, then it makes sense. Such as, you are starting a business that you can sell in 20 years to make a ton of money, but the business doesn’t make you enough today to pay a full mortgage. Or you invest in the next bitcoin.
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