User: Brian Ripley: CAD Debt & Credit: Interest Rate Effect

Anyone who owned real estate in the 1970's and 80's knows that today's real estate prices are highly speculative and only manageable because of historically low mortgage rates and provable incomes. Notice that a mortgage rate move from 4% to 8% results in a 45% increase in monthly payments over 25 years. Before you sign up for that big mortgage, make sure your household income does not have a shorter amortization than the loan. More at www.chpc.biz