Wednesday, March 4, 2015

How to get the inflation rate be included in the mortgage payment?

As we all know when we are doing mortgage for houses, making payment in the beginning will contribute very little to the principle and a lot to the interest, and the other way arround at the end of the loan period. Though if I assume inflation rate stay the same (i.e. 4% per year) so as the interest rate (i.e. 4% per year), I was actually paying a lot more on the interest, cause the same amount of money worth more now then the future. So how can I put in the inflation rate to the mortgage payment?

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