you're not....

the "price of rental" is not the same as the "cost of rental" - as while one guy may pay exactly the same to rent a place as his neighbour pays in mortgage, the owners value is increasing as his debt decreases (repayment mortgage) OR his property increases in value as he pays his monthly interest, whilst his endownment payment per month "should" cover the actual loan at the end of its term.

I prefer "repayment" as there no guarantee with an interest only mortage paying enough to pay off the loan at the end of the term. Downside is, a repayment mortgage costs far more a month on he same property as an interest only mortgage.

Posted By: Cheltenham_Canary, Sep 11, 11:48:52