‘Interest-only’ mortgage a good deal for investors

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DEAR BOB: What do you think of the new "interest-only" home mortgages? As a longtime mortgage broker, at first I didn't recommend them to my borrowers. But in some situations, such as when a home buyer only expects to stay in the home a few years, I began to think these loans were a good deal for the borrower because in the first few years there isn't much mortgage principal payoff – David G. DEAR DAVID: We agree. The new "interest-only" mortgages are a very good deal for the lenders. The reason is they keep all the mortgage principal busy earning interest dollars. That's the primary goal of mortgage lenders to keep interest coming in. Purchase Bob Bruss reports online. Just between us friends, mortgage lenders really don't want to receive principal pay down. The reason is they then have to rent that money again to earn interest on it. But homeowners who plan to stay in their residences "forever" should not borrow on an interest-only mortgage. The primary reason is such bor...