Rollover mortgage

roybean · 09-06-2006, 01:18 PM

FYI:
rollover mortgage=
Mortgage for which the unpaid balance is refinanced every few years at then-current rates. This is good for the borrower and bad for thelender if interest rates are falling, and bad for the borrower and good for the lender if interest rates are rising.

jlynn · 09-06-2006, 01:20 PM

You would think it could also be bad for the borrower, unless they also shorten the length of time financed?

roybean · 09-06-2006, 01:22 PM

I'm still trying to learn about real estate; I got that from investor's terms. Just sharing.

jlynn · 09-06-2006, 01:25 PM

Hedwig · 09-09-2006, 12:05 AM

Quote:

Originally Posted by jlynn

You would think it could also be bad for the borrower, unless they also shorten the length of time financed?

Not necessarily.

Read this article for a different perspective. I intend to refinance my home before I retire, get the cash out, and have it available for emergencies. I'll invest it, and if necessary can occasionally draw on it to help with payments. But right now I'm projecting keeping the same expenses, including the mortgage.