Ingram's mortgage, like most of its ilk, is variable, with the interest rate tied to the widely quoted London Interbank Offered Rate. Her rate is currently 8.42% and can readjust every six months, up to a maximum of 14.92%. The 8.42% rate is about two points higher than the interest on a regular adjustable-rate mortgage. What significance is the interest rate if you're not making monthly payments? It's the basis for calculating how much Ingram or her heirs will eventually have to repay the lender.In today's interest rate environment, these rates are usury. But the banks get away with it because the borrower never makes any payments. And if you're not on the hook to pay it off until you're dead, who cares? Right? It's a license for banks to steal.
I'm a very lucky person with every allergy known to man but still happy to be enjoying a wonderful life living in the best place in the world!