Less money spent on monthly mortgage interest allows you to pay off your loan earlier, build equity faster, and free up income to achieve other financial goals. A perpetual mortgage is similar to a loan with a deferred draw life. It also has similar features to revolving credit. Open mortgages are unique in that they are a secured loan agreement against a property, with funds intended solely for investment in that property. Then there are the disadvantages of a perpetual mortgage. If you miss even one payment, you`re essentially putting your home at risk. Then there`s the reality that you could end up underwater with your loan if the value of your home drops. A traditional mortgage offers you a single lump sum. .
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