HOA has an adjustable rate. What if rates go up?
Here is where we’re changing the way mortgages are viewed. It’s no longer about the rate. It’s about how many dollars of interest you pay. With HOA, your unpaid principal is frequently driven down by direct deposits, which can offset the cost of higher rates because you’re paying interest on a frequently falling balance. The effect compounds with the passage of time. The best way to see the effect is to use the calculator. You can see why even a rising interest rate will have a negligible effect on the terrific economy of financing with an HOA.
