25 February 2011
In other words, it’s always necessary to think over your mortgage decision before locking into it. If you’re thinking about refinancing or purchasing a new house, please, answer a few questions:
• “Can you handle at least a 3% rate hike (in case of a variable rate)?”
• “If you had to sell your house a few years later and its value dropped 15%, would you have enough equity/savings to pay off your mortgage?”
It can be very risky to get a mortgage if you can’t handle even a hypothetical rate increase. Please, consult a mortgage professional if you’re not sure about it.