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  • Do We Lead an Extravagant Lifestyle?
  • Budgeting for UK 2015 – The Real Numbers Are In!
  • Our 5 Top Budget Busters
  • What Will Our Wonderful Trip Cost?
  • What Would You Do If You Won The Lottery?
  • Advice From Exceptional People
  • What Happens If Mortgage Rates Go Up?
  • An Extra $120 Per Month? I’ll Take It!
  • Money Stress – What to Do When You Lose Your Job
  • Wardrobe Budget Blues
  • What Happens If Mortgage Rates Go Up?

    Many of us have never known ‘normal’ let along high mortgage interest rates although it wasn’t that long ago that 6 or 6.5% was the norm for a 5 year mortgage. When I started working at the bank (in the mid 90’s) the rates were closer to 10%!

     

    How much difference would a 1% rate increase make to your monthly payment? Your monthly mortgage payment would increase by a little over 10%. If your mortgage payment is $1,500 per month, it would increase by $175 to approximately $1,675. Not much you say….but could you afford it? What if the rates increased by more than 1%?

     

    What is your plan if you are faced with this challenge? What expenses do you control and/or resources do you have access to? Perhaps you could increase your income or rent out part of your home. Changes to your lifestyle could mean reduced expenses. It’s worth a conversation because knowing how you would deal with this hurdle can reduce worry about the unknown or the ‘What if?’.

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