If you want the most from your personal or investment property to make good you should consider a negative amortization loan . Mortgage amortization is basically mortgage balance reduction. Consequently, when a mortgage has negative amortization , the loan balance is not only not reduced , it actually grows . So , why would you consider this ? Easy . It's a great way to make money investing in real estate elsewhere.
This is a very aggressive and fairly unknown approach to real estate investment . In fact it is a method of investing that does not need to involve property in the usual way we consider real estate investing. In other words, a negative amortization loan you money to invest in real estate than other areas to give, and this is how many people use this type of loan .
Let's assume that your mortgage has a conventional loan that requires a monthly payment of $ 800 . If you refinance to a negative amortization loan , your payment may go down to $ 400 or less , allowing you to invest $ 400 or more per month. Now , keep in mind , your mortgage balance actually getting with this loan , because you are not required to pay interest , and it is added to your principal balance .
However , suppose an extra $ 5,000 to $ 6,000 a year in a high - yield stock or mutual fund to set . After five to ten years , this could turn into a very lucrative strategy .
Remember , it is important to consult with a financial advisor before this loan and this strategy . You could also consult with the wealth - building system , Winning the mortgage game .
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