Can someone help me understand a interest only mortgage loan? I think im getting screwed over!?
so, we build our house last year, my husband is in construction and his dad is a contractor. I just recently found out his dad took out a second mortgage on his house to be able to build our house. Then i found out it is an intrest only mortgage. We pay 1200 a month, for our house to his dad and his dad pays it to the bank. Now, would it be feasible to say that his dad is not paying for his house on his own? He has said before we built our house that his house payment is 1200 a month. Could he be paying his old mortgage on his house and we just be paying the intrest only loan? I am super confused! He rents to my sister in law for 600 a month..the other side of the house..he is very savy with money and frankly I dont trust him! can someone help me understand?
i know we spent 156,000 building the home and it is worth over 210,000…dont know if that helps