Our real estate prices aren't just getting more expensive, the cost of carrying a mortgage is as well. The power of compound interest is a powerful force, which is great for people lending money, but not so much for home buyers borrowing. As interest rates rise, so do mortgage rates. Despite the seemingly small increase in mortgage rates, the costs to these hikes add up. Click here for a thorough explanation of what happens when you run the numbers and breakdown the final cost of a mortgage over its amortization. I think you will find it very interesting.
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