Interest only mortgage and 2nd mortgage

Viewing 5 posts - 1 through 5 (of 5 total)

PenguinJr
Member
@penguinjr
Join Date: 2004
Post Count: 44
February 21, 2004 - 4:42 am
Hey guys,
Is it true that if its an interest only mortgage we need to pay the whole mortgage back after 5 years?
This is what one of the mortgage broker said (mortgage choice).
And um… how does 2nd mortgage work? Interest only? or it totally depends on the vendor?
Mobile Mortgage
Member
@mobile-mortgage
Join Date: 2003
Post Count: 913
February 21, 2004 - 5:47 am
Interest only loans can vary in length, 10 to 15 years,
Upon conclusion of the interest only period you may negotiate another Interest only term or refinance with another lender,
Contact Simon (Mortgage Hunter) he is also in NSW,
Regards
Steven
Mortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
Victoria
PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 21, 2004 - 7:06 am
Penguin,
I think he explained it badly. After 5 years you still owe the whole amount but most lenders then revert the loan to a P&I loan and you pay it back as normal.
It doesn’t need to be repaid at that time – although you can if you choose!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
PenguinJr
Member
@penguinjr
Join Date: 2004
Post Count: 44
February 21, 2004 - 5:29 pm
Thanx guys,
Thats what I thought too… damn mortgage choice… >.<
Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
February 22, 2004 - 3:26 am
>>This is what one of the mortgage broker said (mortgage choice).<<
Do you think it possible that you misunderstood what the broker told you ?
Pisces