But hurting when interest rates go up would happen wether your house is now $300k or $600k.
If you bought your house for $600k you should hopefully be prepared to pay that $600k over time, whether or not interest rates go up.
Yes the collateral is an issue, but if it tanks it’s not like the bank is getting their money back any faster by kicking people out and foreclosing. That would only be an issue if they can’t make the payments anymore.
But hurting when interest rates go up would happen wether your house is now $300k or $600k.
If you bought your house for $600k you should hopefully be prepared to pay that $600k over time, whether or not interest rates go up.
Yes the collateral is an issue, but if it tanks it’s not like the bank is getting their money back any faster by kicking people out and foreclosing. That would only be an issue if they can’t make the payments anymore.