Quote:
Originally Posted by calgarygeologist
The longer terms are great for investors. When I bought my rental condo it was back when $0 down, 40 year mortgages were available and it was really nice to have very little cash exposed upfront and low monthly payments spread out over a long period.
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There are both pro's and cons to this. For the investor low up front capital and with interest being tax deductible the longer amortization is easier to handle. But it also puts upward pressure on prices as payments look low.
I might be okay with allowing 30 year amortization to renew a principal residence. But I would rather see the mortgage rates on places with more equity have rate discounts to incentivize people to pay them down.