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    nargis123's Avatar
    nargis123 Posts: 28, Reputation: 1
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    #1

    Jan 31, 2017, 10:37 AM
    Impact of inflation on mortgage
    Please can someone help me on this:

    Bernie and Hilary have just married and currently live in a rent-free community in exchange for doing community chores and house repairs. They now plan to buy their own home and start a family. They aim to buy a two-bedroom flat in their local area. They have found out that flats such as these are currently on the market for 160,000. The general inflation rate is 2% a year but property-price inflation in their area is 6% a year. Both of these rates are expected to stay the same on average for the foreseeable future. The couple are confident they will be able to get a fixed interest-rate mortgage.

    Explain the impact of inflation on their mortgage.
    Curlyben's Avatar
    Curlyben Posts: 18,482, Reputation: 1857
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    #2

    Jan 31, 2017, 10:42 AM
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
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    #3

    Feb 3, 2017, 01:45 PM
    What is your understanding of a mortgage. Does the APR fluctuate? What are ARM's?
    nargis123's Avatar
    nargis123 Posts: 28, Reputation: 1
    New Member
     
    #4

    Feb 6, 2017, 11:01 AM
    I am not sure I am really stuck on this. I am not sure what impact the inflation will have on the mortgage
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
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    #5

    Feb 6, 2017, 01:15 PM
    Did you look up ARMs at least?
    What do you know about mortgages? If you tell us nothing, we will not help unless you try.

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