GiddyGap@lemm.ee to News@lemmy.world · 7 months agoA Huge Number of Homeowners Have Mortgage Rates Too Good to Give Upwww.nytimes.comexternal-linkmessage-square146fedilinkarrow-up1363arrow-down110
arrow-up1353arrow-down1external-linkA Huge Number of Homeowners Have Mortgage Rates Too Good to Give Upwww.nytimes.comGiddyGap@lemm.ee to News@lemmy.world · 7 months agomessage-square146fedilink
minus-squareramble81@lemm.eelinkfedilinkarrow-up3·7 months agoSo what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?
minus-squareCyborganism@lemmy.calinkfedilinkarrow-up1·7 months agoWell if you can’t afford it, you take a temporary mortgage with the objective to sell. Otherwise you add a lump sum to reimburse the capital to reduce your payments. Different banks will offer different rates as well so you can shop around and negotiate.
So what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?
Well if you can’t afford it, you take a temporary mortgage with the objective to sell.
Otherwise you add a lump sum to reimburse the capital to reduce your payments.
Different banks will offer different rates as well so you can shop around and negotiate.