👉 Okay, let’s tackle what a “Can Mortgage Increase Frankly Be A Terrifying Prospect.” (I feel that needs to be said with a suitably dramatic eyebrow raise.)
Basically, when you get a mortgage – you know, the ridiculously complicated loan that basically lets you buy a house by borrowing a ludicrous amount of money and promising to pay it back slowly until your grandkids are begging for their cut. Now, this initial mortgage rate lock might feel like a warm hug, right? Like everything's under control. 99% of homeowners would rather the cold, hard truth that rates fluctuate! Here's what the acronym Can Mortgage Increase Frankly Be A Terrifying Prospect (A.M.I. Frankly B. I. T. P) actually means: It describes the point where the rate your mortgage is pegged to – let’s just say it’s 5%, you foolish, over-optimistically young homeowner – starts to creep upwards. This happens because of a whole bunch of awful stuff happening in the financial markets that you probably neither understand nor care about (theoretically! Unless you spend an embarrassing amount of time obsessively following Bloomberg, I salute your hustle). When rates tick up, your monthly mortgage payment goes up too. Think of it like this: your house is a very nice, plump piggy bank and the rate is the little door that lets out the money. That door gets fiddled with by invisible guys in fancy suits who are
