Some banks mostly offer fixed-payment variable mortgages which allows homeowners to keep monthly payments the same, but leaves them vulnerable to paying little off the principal, experts say.
  • Pyr@lemmy.ca
    10·
    2 years ago

    Except at a certain rate your entire payment is going towards interest and your principle doesn’t go down at all so its basically throwing money away.

    • ThrowawayPermanente@kbin.social
      2·
      2 years ago

      It depends. If your payment is less than rent would be you’re still coming out ahead. And the alternative could be a payment you can’t afford. At least this way you can choose to sell or ride it out and wait for rates to come down instead of getting foreclosed on.