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It will also increase the value of your house. Fix rate debt is definetly your friend.
by justonepost 8y ago
It will also increase the value of your house. Fix rate debt is definetly your friend.
- jgalt212 8y agoFixed rate debt may increase the value of your house if interest rates go up and your mortgage is assumable.
- toomuchtodo 8y agoAlmost no US mortgage products are assumable.
- gibybo 8y agoAll US government home loan programs are assumable (FHA, VA, and USDA). This Quora answer indicates that FHA loans alone alone make up a majority of new home loans in the US: https://www.quora.com/What-percentage-of-US-home-loans-are-financed-by-FHA https://www.quora.com/What-percentage-of-US-home-loans-are-f...
- toomuchtodo 8y agoI should've said conventional loan products. Thank you for pointing out my mistake.
- djrogers 8y agoWhile they make up the moajority of new home loans, they only make up ~15% ot total mortgage originations, leaving 85% of homes being mortgaged with conventional mortgages.
- beiller 8y agoI disagree. If inflation is very high, the fed (aka BOC for me) will increase the interest rate, and by correlation, a higher mortgage rate ensues. Less people qualifying for mortgages attacks the demand side of the market, lowering the prices of homes.