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Randall Herbert

What Happens To My Monthly Mortgage Payment...

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If the interest rates goes from 3% to 6% then it has doubled. That means you'll have double the interest to pay on the loan, so your monthly payment will double if they are entirely interest.

There are many people who borrowed 5x or more their salary on IO as it was the only way they could afford to buy a property. Watch as those who got incredibly low 'fixed for a few years' deals a few years ago all lose their homes when said deals run out and thair payments jump from 3.x % to 5.x %. I'm just glad that, even with such slack regulation and low-interest deals I still couldn't afford to get on the ladder, 'cause this ladder's about to lose its rungs!

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OK own up!

Who would vote that monthly payments would DECREASE if interest rates increased???????? :blink:

Kirsty Allsop sit back down please.

Edited by trev

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OK own up!

Who would vote that monthly payments would DECREASE if interest rates increased???????? :blink:

Kirsty Allsop sit back down please.

But Kirsty says she has a 10 year fixed rate loan and some rainy day savings in an interest paying account.

Surely she is better off each month if rates went up?

:P

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But Kirsty says she has a 10 year fixed rate loan and some rainy day savings in an interest paying account.

Surely she is better off each month if rates went up?

:P

Not if rising rates brings the HPC -- she might be out of a job!

frugalista

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Guest horace

>> Randall Herbert

quote

Its quite scary how people can get such a simple question wrong?

unquote

What I think you meant to say was ` Its quite scary how people can get`THE ANSWER TO` such a simple question wrong.

CSE English was not your strongest subject.

horace. :D:D:D

edit `rent it out` do you mean `let`?

Edited by horace

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Its quite scary how people can get such a simple question wrong?

I guess that's why there are muppets that buy, and those of us that post here ;)

I'd guess HPC posters are reasonably educated (ok so almost 30% got it wrong).. but what about the general population... maybe 30% would of got it right... and that would be scary :ph34r:

Edited by beerhunter

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Of course, most people have a repayment mortgage with some remaining period, so for a rate increase from 3% to 6% that's a hike in monthly payments of:

Period, Percent Increase

5 years, 8.72%

10 years, 15.89%

15 years, 22.91%

20 years, 29.71%

25 years, 36.22%

100 years, 90.15%

200 years, 99.46%

infinity (IO), 100%

Convergence to the IO limit is acctually quite slow ... :o

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But Kirsty says she has a 10 year fixed rate loan and some rainy day savings in an interest paying account.

Surely she is better off each month if rates went up?

:P

Oh yeah - and Kirsty always tells the truth!

Change your prescription mate, your tablets aren't working anymore :rolleyes::rolleyes:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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