Interest rates are going up, what do you think will happen to mortgage holders?

When interest rates go up, the cost of borrowing money increases, and this can affect mortgage holders in a number of ways.For those with adjustable-rate mortgages, their monthly payments could go up if the interest rate on their loan is tied to a benchmark rate.

For those with fixed-rate mortgages, their monthly payments will remain the same, but the overall cost of their loan will increase if they choose to refinance or sell their home.

Additionally, rising interest rates can affect the housing market by making homes less affordable and decreasing demand for new homes. This could lead to a slowdown in the housing market, which could result in lower home values and reduced investment returns for some homeowners.

It's important to note that the impact of rising interest rates will depend on many factors, including the individual's financial situation and the overall state of the economy. If you have concerns about how rising interest rates may affect you, it's a good idea to speak with a Finance Broker!