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(1) Mortgages currently have LOWER interest rates than inflation. Right now inflation is above 5%, and I know people who refinanced below 3%. (2) It doesn't ma
by woofie11 5y ago
(1) Mortgages currently have LOWER interest rates than inflation. Right now inflation is above 5%, and I know people who refinanced below 3%.
(2) It doesn't matter too much in either case. If I took on a debt 5 years ago, and I'm paying $500 per month, if we see inflation will mean I'm paying half of that.
Inflation is really good for people (and governments) with excessive debt. If your net worth is negative, inflation is a tax on your debtors, not on you.