In the years ahead, the biggest financial mistake you make just might be failing to think well in advance about a mortgage coming up for renewal.
The era of pleasant surprises for people renewing their mortgages is over.After five years of trending lower, mortgage rates have reversed course and started to rise. Aspiring first-time home buyers are being priced out of the market by these increases, but at least they’ve avoided a costly mortgage entanglement. Existing homeowners may simply have to pay more.... how people will afford higher mortgage payments (?)We’ve been assured by people in the mortgage industry that homeowners can absorb higher mortgage payments. A 2011 report from the Canadian Association of Accredited Mortgage Professionals said there is “very substantial room” for households to pay higher mortgage rates. Will Dunning, CAAMP’s chief economist, said Monday that he stands by that view.But the issue is not whether you can afford higher mortgage payments. Rather, it’s what you’ll have to sacrifice to make them.
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