This cozy bungalow looked like a good investment at the time. Paying 10% down and financing the rest at a dirt cheap rate through an adjustable rate mortgage seemed the best way to go.
“Double-check your mortgage terms before closing, not after closing,” he cautions. His mortgage rate might increase in late December 2007 — to 13%. Even if he raises the rents, he might not be able to make an operating profit on the property. Home appreciation could save him eventually, he says, if potential development of a year-round resort at Malans Peak and a generally strong market continue to boost Ogden housing prices. But he’d rather sell and start a new investment with better financing, he says.
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