Home Owners ..if the interest lending rate goes to say....over 10% will it effect you ?

Question

I remember the good old 70's & 80's ...my Dad was nearly pulling his hair out when the Mortgage interest rate threatened to hit 20% - If I remeber correctly it hit 15% .. I am moving home this summer and my wife & I are taking on a large Mortgage.. What do you think will the rate ever be high as that again...are you worried ?

Answer 1

Well the question is simple.... Can you afford your mortgage? If you can honestly answer yes then go ahead with it but I presume from this question that the answer is probably no. I would look for somewhere that you are more likely to be able to afford in the event of a price crash (which I do think is inevitable)

Answer 2

I think at that point that alot of people will be filing for bankruptcy or foreclosing on the house (sad deal, but it will happen). What is going on now, it that because the rates aren't as awesome as they were a couple of years ago, people don't want to let go of their awesome mortgages. And people were over approved and took on arm loans, now the arms are going up, so they are screwed.
I really don't think it will get that high again. People just can't afford the way that the market has gone up. My husband & I just closed on a refi before xmas and got 6% fixed for 30 years.

Answer 3

no,I have a fixed rate mortgage. I don't think it will get up to 10%

Answer 4

If you have a fixed rate you don't have to worry.. its only when you have the adjustable rate that you have to worry.
The only reason my payment would go up now is if the property taxes or the insurance increases otherwise its stable.

Answer 5

If you have a fixed mtg. than you are fine and it might even benifit you by investing some saving at high interest rate. if you have flexible that you are in trouble. I don't see interest rate climbing at 10%.