Is my mortgage payment less with an interest only mortgage vrs a Capital and Interest Repayment Mortgage ?
Yes. BUT – although your monthly mortgage payment will be less with an interest only mortgage, compared to a capital and interest repayment mortgage – this lower monthly mortgage payment can be a false economy, as you are not actually paying your mortgage off, you are simply paying interest to your mortgage lender. Therefore, if you remain on an Interest Only Mortgage for the full mortgage term – at the end of your mortgage term you will still owe the full amount you originally borrowed on your mortgage. The benefit of a Repayment Mortgage is that your monthly payments contribute towards paying off your mortgage – and providing you keep up your payments, your mortgage will be paid off.
