6 ms·

For certain values of "works well". I mean, I'm not defending the ratings agencies here, nor ignoring the real problems with cheap credit, but from an interest

by rconti 9y ago

For certain values of "works well". I mean, I'm not defending the ratings agencies here, nor ignoring the real problems with cheap credit, but from an interest rate perspective, I don't think there's a better place to borrow money than the US. Head and shoulders better/cheaper than anywhere else I'm aware of.

wu-ikkyu 9y ago
Why is it better?
- Vindicis 9y ago
  It has it's roots in the USD being the currency required to buy Oil (Petrodollar) and sort of builds from there. Some searches should give the information pretty easily, but it's a rather complex topic to break down into a quick comment. Happy reading! Edit: Apparently some people are too lazy to educate themselves beyond anything in the comment section. Here, perhaps clicking a link is within your grasp. https://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp https://www.investopedia.com/articles/forex/072915/how-petro...
  - deleted 9y ago
    [deleted]
hectormalot 9y ago
Not sure. Mortgage rates in the us are 3.5-4.5% (https://www.bankrate.com/new-jersey/mortgage-rates.aspx https://www.bankrate.com/new-jersey/mortgage-rates.aspx), while I can get a mortgage in the Netherlands for less than half of that (1.8-2.5%, https://www.abnamro.nl/nl/mobile/prive/hypotheken/actuele-hypotheekrente/hypotheekrente-overzicht.html https://www.abnamro.nl/nl/mobile/prive/hypotheken/actuele-hy...) (I actually just got a mortgage and it was pretty painless: 1 week from 1st contact to contract)
- astura 9y ago
  I don't speak Dutch and Google translate doesn't work for that page for some reason, but I strongly believe you're comparing apples to oranges. What's the terms to get a 1.8% mortgage? How much loan to value (down payment) is required and how long is the loan term? Fixed or variable rate? What is the maximum debt to income ratio? Income requirements? Is that APR or APY? I believe, again I don't speak Dutch, the longest loan term on that page is 10 years. If that's the case, then you'd have to compare it to a 10 year mortgage in the US, not a 30 year like you did. Edit: I was holding my phone in a way I couldn't see the whole table. It appears to me that a 30 year mortgage with less than a 15% down payment is 4.40%.
- 0xfeba 9y ago
  Homes in NL, and EU in general are about 2-5x the price of an American home.
  - ashelmire 9y ago
    Compared to where? The median house value in LA is nearly 50% higher than in Amsterdam. SF and NY would be worse, as would many other areas. Sure, a house in the middle of nowhere or shit areas in the US is cheap, but any desirable area is expensive.
    - softawre 9y ago
      As somebody that lives in a "shit area", can you find a new adjective? I love the Midwest, my money goes WAY further here working remote for a California company, not to mention all of the other benefits. Not bashing LA/NY or those who choose to live there, but stop bashing us.
      - jstarfish 9y ago
        Anyone who measures their commute in terms of hours because they can't afford to live closer to work lives in a "shit area." Temecula is a shit/middle of nowhere area if your closest employment options are in LA. Nobody said anything about the Midwest being shitty.

by rconti 9y ago

wu-ikkyu 9y ago

Why is it better?

Vindicis 9y ago
It has it's roots in the USD being the currency required to buy Oil (Petrodollar) and sort of builds from there. Some searches should give the information pretty easily, but it's a rather complex topic to break down into a quick comment. Happy reading! Edit: Apparently some people are too lazy to educate themselves beyond anything in the comment section. Here, perhaps clicking a link is within your grasp. https://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp https://www.investopedia.com/articles/forex/072915/how-petro...
- deleted 9y ago
  [deleted]

hectormalot 9y ago

Not sure. Mortgage rates in the us are 3.5-4.5% (https://www.bankrate.com/new-jersey/mortgage-rates.aspx https://www.bankrate.com/new-jersey/mortgage-rates.aspx), while I can get a mortgage in the Netherlands for less than half of that (1.8-2.5%, https://www.abnamro.nl/nl/mobile/prive/hypotheken/actuele-hypotheekrente/hypotheekrente-overzicht.html https://www.abnamro.nl/nl/mobile/prive/hypotheken/actuele-hy...) (I actually just got a mortgage and it was pretty painless: 1 week from 1st contact to contract)

astura 9y ago
I don't speak Dutch and Google translate doesn't work for that page for some reason, but I strongly believe you're comparing apples to oranges. What's the terms to get a 1.8% mortgage? How much loan to value (down payment) is required and how long is the loan term? Fixed or variable rate? What is the maximum debt to income ratio? Income requirements? Is that APR or APY? I believe, again I don't speak Dutch, the longest loan term on that page is 10 years. If that's the case, then you'd have to compare it to a 10 year mortgage in the US, not a 30 year like you did. Edit: I was holding my phone in a way I couldn't see the whole table. It appears to me that a 30 year mortgage with less than a 15% down payment is 4.40%.
0xfeba 9y ago
Homes in NL, and EU in general are about 2-5x the price of an American home.
- ashelmire 9y ago
  Compared to where? The median house value in LA is nearly 50% higher than in Amsterdam. SF and NY would be worse, as would many other areas. Sure, a house in the middle of nowhere or shit areas in the US is cheap, but any desirable area is expensive.
  - softawre 9y ago
    As somebody that lives in a "shit area", can you find a new adjective? I love the Midwest, my money goes WAY further here working remote for a California company, not to mention all of the other benefits. Not bashing LA/NY or those who choose to live there, but stop bashing us.
    - jstarfish 9y ago
      Anyone who measures their commute in terms of hours because they can't afford to live closer to work lives in a "shit area." Temecula is a shit/middle of nowhere area if your closest employment options are in LA. Nobody said anything about the Midwest being shitty.