Interest-only home loans pave path to riches
| f you are adverse to new ways of thinking about your mortgage and building wealth, don’t read “Untapped Riches” by Susan and Anthony Cutaia. This new book will challenge your thinking about mortgages. Instead of making extra mortgage principal payments to own your home and investment properties free and clear as fast as possible, the mortgage broker authors advise never paying off your mortgage and building wealth instead. |  |
This book is not for typical homeowners who think it’s smart to pay off their home loans as fast as possible. Instead, the husband and wife co-authors explain why interest-only, so-called “option mortgages,” and even negative-amortization mortgages cut monthly mortgage payments, enabling borrowers to acquire more properties. Contrary to what most mortgage advisers suggest, the Cutaias are big advocates of using the leverage of borrowing and periodic refinancing to use tax-free cash to acquire more properties. They recommend interest-only adjustable-rate mortgages (ARMs) with maximum payment increase “caps,” and making 20 percent cash down payments to obtain 80 percent loan-to-value mortgages. The book’s themes are (1) minimize your mortgage payments, (2) maximize the use of leverage and the use of compound interest, and (3) pay yourself first before you pay the bank.
search for : Untapped Riches, option mortgages, negative-amortization mortgage, refinancing
