Eli5: Is inflation good for your mortgage?

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If you are paying a fixed rate on a mortgage, is inflation then a good thing?

In: Economics

34 Answers

Anonymous 0 Comments

Theoretically yes, any long term debt can become “cheaper” over time with respect to inflation. But remember that your principal and interest is only one part of what goes into the cost of a house. You also have property taxes, homeowners insurance, utilities, and maintenance, all of which can be affected by inflation.

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