What would happen to my mortgage if the dollar was replaced by new currency?

If the dollar was replaced by a new world currency would I be able to pay my mortgage off with the worthless dollar? My house is valued in dollars. If it was wiped out could I just get all those dollars no one wants and pay it off?

Is this why the banks are trying to hold as many properties as possible? this would enable them to sell the homes, and have the new mortgage valued in the new currency.

If the dollar collapses and is replaced all those loans become worthless.

Also is there anyway for the goverment to pass laws converting existing loans valued in dollars to a new currency or are the current laws in place to rigid for that.

I just seems the whole world currency idea would totally destroy everything that is valued in dollars.

When currencies change, usually, prices go up with everything.

The UK went to decimal coins (as of now) back in I think 1972. If you directly converted the change over, it might have been say, 7.7p but it naturally go rounded up to maybe 10p.

So if we went to the Euro and people got paid in Euro's, had to buy everything in Euro's, I would make a large bet that we would all be a lot worse off and poorer!

Yhea I was gonna say about the Euro too, that's a whole bunch of countries that wen't from old money to new money overnight (sort of) - that's a good place to look for parallels, I didn't see people loosing out al that much.

Mind you with money it's what you can back it up with, or at least convince people you can back it up... So with America it's anyone's guess.

Originally posted by minkey53
When currencies change, usually, prices go up with everything.

The UK went to decimal coins (as of now) back in I think 1972. If you directly converted the change over, it might have been say, 7.7p but it naturally go rounded up to maybe 10p.

So if we went to the Euro and people got paid in Euro's, had to buy everything in Euro's, I would make a large bet that we would all be a lot worse off and poorer!

So all outstanding loans/debt would be converted to this currency by default. The result being that the new loans value would be 10pct above the dollar denominated original loan. Even though my mortgage document lists the loan value in US dollars?

Originally posted by jlafleur02
So all outstanding loans/debt would be converted to this currency by default. The result being that the new loans value would be 10pct above the dollar denominated original loan. Even though my mortgage document lists the loan value in US dollars?

That's a good question. For those fortunate enough to be able to pay off their mortgage, the question is when...

reply to post by jlafleur02


I was stationed in GE whenever they went from deutchesmarks to euros, the local economies pretty much kept their mark prices but just put a Euros sign on the value. Even though euros were valued roughly twice the mark prices when the change happened, then it wasn't long before you went to the ATM machine on post and the exchange rate being so bad that it was worth it to get your money out in euros to buy stuff on post with. I don't know about the German homeowners though with their housepayments or anything.

If the dollar loses enough value it means that you'll be able to pay for the written balance of your mortgage in those dollars.

If your mortgage is 100,000 and if the dollar loses 20% of it's value(Provided wages keep up with inflation) it doesn't mean that your mortgage will go up by 20%. If you weren't stupid and went for a fixed rate mortgage you'd be able to pay off your house in MUCH less time. If the currency hyper-inflates and you wind up with 100,000 dollar paychecks you can pay off the principle and the interest in two checks.

Your mortgage is a contract and is not subject to change with inflation.