Spot The Speculator #34 - "I was talking to a guy I know who has about $700k in mortgage debt on rental properties at a variable rate of 2.85%. I told him that rates are going up. He has this attitude that whatever happens, he will be ok."

pricedoutfornow at VREAA 18 Apr 2011 12:07pm -
“People just do not believe (or don’t know) that interest rates ARE going up. They have not sat down and done the calculations. I think there are going to be a lot of people crying to their brokers and banks “But but you never told me that my payments could go up 50%/100%!!! Why didn’t you tell me?” This is exactly what happened in the US-people just got a letter one day from the bank that next month, their teaser rate is expired, and the mortgage payment is now much higher. I was talking to a guy I know last week, who has about $700k in mortgage debt (rental properties) at a variable rate of 2.85%. I’ve told him time and time again that rates are going up. I really don’t think he has a clue, he has this attitude that whatever happens, he will be ok. But I know for a fact that he has not sat down and done the calculations. He just carries on lalala….life is good-I have paper equity!”