How to cover rising interest rates on adjustable mortgages

[Timothy B. Dunn]

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....

[Charles Carillo]

@Timothy B. Dunn

I believe the best way to protect against interest rates rising with adjustable mortgages is to refinance all of your loans to fixed-rate, long-term financing. It will most likley be a higher rate but you do not have to worry about it readjusting down the road. A tenant is not going to pay you more for your place because interest rates went up.