100% mortgage financing is a trap

Editor, Reference is made to the article, "Is 100% mortgage financing realistic?" (The New Times, October 22). People rush to get hold of the key for the house but forget to read and examine the small print in the contract.

Editor,

Reference is made to the article, “Is 100% mortgage financing realistic?” (The New Times, October 22).
People rush to get hold of the key for the house but forget to read and examine the small print in the contract. Few people understand the meaning of interest rate charge on their mortgage and its effect on the repayment. Do not fall into that trap and end up living in a monstrous nightmare house with a debt you can hardly afford to service.

100% mortgage does not work and never benefit the borrower. You end up paying almost twice the price of the house. And, if one falls sick or loses the job, it will have a nasty ending where you lose everything. And if you have a property crash, you are still liable to the original amount borrowed even though your house is worth a fraction of the outstanding amount.

In Europe and America, we are living that nightmare. Learn how to live within your means and avoid putting a rope around your neck. There are more important things in life than big houses. Your health and family is more important.

Emmanuel

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