If you are paying a fixed rate on a mortgage, is inflation then a good thing?
In: Economics
Inflation does generally make your loans effectively ‘cheaper’ later in their term, and for something like a 30 year mortgage, even relatively low inflation over that long of a time span can make your monthly payment feel pretty darn low during the back half of it.
Inflation can affect other aspects of your life besides just your mortgage though, especially if it’s a higher inflation rate, so it might not be a good thing overall. But in terms of just your fixed rate insurance, inflation basically does makes it easier to pay off over time.
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