How to cover rising interest rates on adjustable mortgages
We are searching lenders for our first property and are having to finance using our llc in order to protect my pension limits on earnings. My question is how do you account for future interest rate hikes down the road? Are rents typically tied to the rising interest rates? I am assuming that when the interest rates do increase, mortgage payments will naturally go up with home owners, does this in turn trigger rental rates to increase as well to cover our higher costs?
We are obviously new to this game so please be kind with us newbies....