Saving mitigates the perils of mortgage rates fluctuations
Mortgage rates are notoriously unpredictable. Sure, one can use specific economic data to gauge where the rates may be headed, especially during times of socio-political unrest or economic upheaval; but a rough approximation is all it is. And in any event even if one does manage to get a finger on the pulse of mortgage rates, it doesn’t do anything by way of being able to handle the financial implication as it pertains to one’s ability to afford the mortgage repayments.
However, there is a sure way that no matter what the mortgage rates fluctuation is one is ready and able to handle the financial fall-out; and that is through routine saving. When you have financial reserves that are replenished on a regular basis then no matter the conditions of in the economy, one is able to tap into these financial reserves in order to lessen the blow that an unexpected mortgage rates fluctuation deals. And this blow can be rather devastating, especially when one is already barely managing the expenses that one must deal with monthly.
It’s inevitable that mortgage rates will fluctuate from time to time, and this does directly affect the health of one’s finances. But it needn’t mean the beginning of one’s financial demise if one is enterprising enough to keep a savings account that will get one through unexpected dips like rates increases.