Helping to scale the coming interest rate rate cliff
His recommendations are to proceed with extreme caution in determining the duration of a new loan that replaces an expiring one.
He also calls for people to take full advantage of cash inducements that banks sometimes offer to people to send business their way.
Bolton, who founded Squirrel, says a large numbers of people with 3% mortgages will be replacing then with ones at around 6.5% sometime this year.
“If you’ve got a million-dollar mortgage, the transition is going to set you back about an extra $2,000 per month – or $24,000 a year,” Bolton says.
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