Pro: Save on mortgage costs initially -- a great option if you don't plan on living in the home long. Con: Plans sometimes change. If yours do, you will have to pay off or refinance the balance, which takes time, effort and more closing costs.
Pro: Reduces monthly payments and saves money on closing costs. Con: Sellers charge more for houses, so buyers need more cash to cover the difference between the asking price and loan balance.
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Feeling lost in the mortgage wilderness?