mortgage interest rate hike????

[brokeone]

Just a thought.What is stopping the mortgage companies (banks) from hiking our mortgage interest rates in the manner they do our credit card rates?Lets say the bank/mortgage company decides a "homeowner" might be becoming a bad risk (even though that homeowner) has never missed a payment,so they raise our interest,we start missing payments,etc.
brokeone

[HHM]

The practical explanation is mainly because its a secured debt. If you default, they get your house. Also, mortgage lending is more regulated so there are probably some provisions aginst altering the interest rate. (truth in lending, etc)

[brokeone]

The practical explanation is mainly because its a secured debt. If you default, they get your house. Also, mortgage lending is more regulated so there are probably some provisions aginst altering the interest rate. (truth in lending, etc)

Hello HHM,
Thanks for the reply.Maybe I'm becoming more paranoid.