Interest Only Mortgage For First Investment Property

[Renate Brison]

Is it a good idea to use an interest only mortgage to finance a first time investment property?

What are the pros and cons of an interest only mortgage?

[Joe Abughazaleh]

@Renate Brison I wouldn't suggest getting an interest only mortgage. Interest rates are very low at the moment you can lock in a 15yr or 30yr for 2.6-3.8% that's super cheap and it's fixed. Usually interest only loans adjust after 5-7 yrs. You can get yourself into trouble down the line if you hold a property and it adjusts higher and can't sell If the price drops. Think it works if your flipping properties, but if it's your first investment I would lean towards the safe side. Always have a plan B or exist strategy.