Paying down loans in HyperInflated Economy

[Davard]

Okay, here’s my question. Say we do reach a period of hyperinflation. Suddenly a cup of coffee is $20, Gas is $25 a gallon, etc. (Maybe that’s not hyperinflation, but some solid inflation nonetheless). My question is, is the bank going to find a way to make me pay more than my mortgage’s value is, and adjust to this inflation? Example, I have a 300k mortgage. If I’m suddenly making 100k a year to work at In-Out Burger, do mortgages contain clauses to adjust to inflation, or is my 300k at 6% locked in?

I’m sure I should read the fine print on my mortgage, of course, but I figured somebody here might know off hand. I imagine the bank would get it’s inflated-adjusted money, since, as recent events show, they seem to get what they want.

[FoamFinger1]

Davard,
With your scenario, you just won the home owner super lotto. Can you imagine what the rates would be for a loan under your scenario, yikes!

[FoamFinger1]

Davard,
With your scenario, you just won the home owner super lotto. Can you imagine what the rates would be for a loan under your scenario, yikes!

[FoamFinger1]

Davard,
With your scenario, you just won the home owner super lotto. Can you imagine what the rates would be for a loan under your scenario, yikes!

[FoamFinger1]

Davard,
With your scenario, you just won the home owner super lotto. Can you imagine what the rates would be for a loan under your scenario, yikes!

[FoamFinger1]

Davard,
With your scenario, you just won the home owner super lotto. Can you imagine what the rates would be for a loan under your scenario, yikes!

[j]

That is the major advantage of home ownership. The cost of “rent” is fixed, or that is how it was for our grandparents.

My uncle once said his father brings in $1200 a month compared to his $3500 (Yes this was years ago), but his father is rich and he is poor. At the time my grandfather had a paid off home, three paid off cars, full medical benefits, and cash to spare.

My grandfather stayed in his house and paid it off, but today people move up every 7 years and refinance all the time. People no longer believe in paying off homes; they believe they should cash out there equity to buy Chinese products and vacations.

[j]

That is the major advantage of home ownership. The cost of “rent” is fixed, or that is how it was for our grandparents.

My uncle once said his father brings in $1200 a month compared to his $3500 (Yes this was years ago), but his father is rich and he is poor. At the time my grandfather had a paid off home, three paid off cars, full medical benefits, and cash to spare.

My grandfather stayed in his house and paid it off, but today people move up every 7 years and refinance all the time. People no longer believe in paying off homes; they believe they should cash out there equity to buy Chinese products and vacations.

[j]

That is the major advantage of home ownership. The cost of “rent” is fixed, or that is how it was for our grandparents.

My uncle once said his father brings in $1200 a month compared to his $3500 (Yes this was years ago), but his father is rich and he is poor. At the time my grandfather had a paid off home, three paid off cars, full medical benefits, and cash to spare.

My grandfather stayed in his house and paid it off, but today people move up every 7 years and refinance all the time. People no longer believe in paying off homes; they believe they should cash out there equity to buy Chinese products and vacations.

[j]

That is the major advantage of home ownership. The cost of “rent” is fixed, or that is how it was for our grandparents.

My uncle once said his father brings in $1200 a month compared to his $3500 (Yes this was years ago), but his father is rich and he is poor. At the time my grandfather had a paid off home, three paid off cars, full medical benefits, and cash to spare.

My grandfather stayed in his house and paid it off, but today people move up every 7 years and refinance all the time. People no longer believe in paying off homes; they believe they should cash out there equity to buy Chinese products and vacations.

[j]

That is the major advantage of home ownership. The cost of “rent” is fixed, or that is how it was for our grandparents.

My uncle once said his father brings in $1200 a month compared to his $3500 (Yes this was years ago), but his father is rich and he is poor. At the time my grandfather had a paid off home, three paid off cars, full medical benefits, and cash to spare.

My grandfather stayed in his house and paid it off, but today people move up every 7 years and refinance all the time. People no longer believe in paying off homes; they believe they should cash out there equity to buy Chinese products and vacations.

[capeman]

The banks and the Fed will fight to the end against this scenario as bank capital is worth that much less in a hyperinflationary scenario. Right now deflation is beginning its reign of terror across all asset classes.

[capeman]

The banks and the Fed will fight to the end against this scenario as bank capital is worth that much less in a hyperinflationary scenario. Right now deflation is beginning its reign of terror across all asset classes.

[capeman]

The banks and the Fed will fight to the end against this scenario as bank capital is worth that much less in a hyperinflationary scenario. Right now deflation is beginning its reign of terror across all asset classes.

[capeman]

The banks and the Fed will fight to the end against this scenario as bank capital is worth that much less in a hyperinflationary scenario. Right now deflation is beginning its reign of terror across all asset classes.

[Author]

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