Inflation is your mortgage payment’s best friend, but it sucks for everything else.
Your food gets more expensive. Your kids get more expensive. Your golf lessons that never make you any better, still get more expensive. But your mortgage loves it.
Most mortgages have a fixed payment that is locked in for 30 years. So, you are paying the same dollar amount on day one, as you are on day 10,000.
Over those 10,000 days, the dollar becomes less and less valuable, but your mortgage payment stays the same.
Take for instance the McDonald’s Big Mac. 25 years ago, a Big Mac was $2.50. Now it costs $5. A $1,000 mortgage payment your parents locked in 25 years ago should now cost $2,000, but mortgages aren’t like a Big Mac. The payment doesn’t ever go up, it’s locked in. So, your mortgage debt literally becomes less expensive every single year.