3 borrowing misconceptions to avoid

3 borrowing misconceptions to avoid: "Mortgage and home equity borrowers often have misconceptions. Because these misconceptions may cloud decision making, let's take a look at three examples and why they are off-base.
'You don't pay any principal in the early years of a mortgage'
This line is often used to justify the choice of an interest-only mortgage. But this is debunked solely on the basis of the higher monthly payment for a traditional, fully amortizing loan compared to an interest-only loan. A fully amortizing $350,000 loan at 5.75 percent carries a monthly payment of $2,042. An interest-only loan in the same amount, at the same rate, carries a payment of $1,677 -- a difference of $365 each month. So if the interest rate and the loan amount are the same, why the "
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