Home loan interest rates

Today, we want to talk about home loan interest rates.

For the majority of people, home loans are going to be over a 30 year period. While most people try and pay it off earlier - this is definately a good investment - the reality is it's still going to be a long term project.

What is scary, is that people often borrow to their maximum based on a low interest rate at the start of the loan. While their income may increase over time, this is still a dangerous move.

The reality is: As some time in the next 30 years, interest rates will hit double digets!!! Looking at historical data, this is the sad truth.

However, if you are prepared for this, borrow less than your maximum and make payments based on a double figure interest rate, you will be better off, and will not notice a change when things go up.

This is such a simple fact, but it can save people from losing their houses or going bankrupt.

Cheers

Andrew Collings