What are the pros and cons of nothing down mortgages?

Answer by  KathySJ (102)

Nothing down mortgages allow you to purchase a house quicker than having to save for a down payment. However, it takes longer to build equity in your home.

Answer by  1cinbrew (31)

The biggest benefit of a nothing down mortgage is that less upfront money is required in getting a home loan. The biggest con is that that means the original principal amount of the loan is much larger equaling longer payment time and much more interest being paid on the loan.

Answer by  GAMC (49)

The pros are if you are unable to come up with any down payment this is a good options. On the con side, you're going to be hit with PMI and you will have a higher mortgage payment.

Answer by  javiera (8)

I think that for the person who's buying it could be a little difficult to get a nothing-down mortgage and for the borrower it could be a quite risky business to do.