If you are paying a fixed rate on a mortgage, is inflation then a good thing?
In: Economics
Yes, assuming the inflation leads to a steady increase in your wage and assuming you’re locked into a mortgage with term. Generally, the way the system deals with inflation is to increase borrowing rates. So if you’re not locked into a lower rate then your borrowing costs will rise as fast or maybe faster then your wages.
The flip side is that, as the value of money decreases, the amount of money real property can command also increases. AKA, the worth of your home will rise faster.
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