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As someone not living in the US, having a loan rate fixed for 30 years seems insane. So if interest rates go up in the US more than Freddie Mac expects, they a
by kristianp 8y ago
As someone not living in the US, having a loan rate fixed for 30 years seems insane. So if interest rates go up in the US more than Freddie Mac expects, they are going to lose money on all their loans for 30 years? Seems like an unsustainable risk to me.
In Australia we have 4 year fixed home loan rate, and most loans are variable rate.
- ComputerGuru 8y agoNo, that’s when they get another bailout ;)
- carlivar 8y agoAre you aware of the amortization schedule? Interest portion of the payoff is front loaded. It is a very good deal to write a mortgage no matter what the rate is, assuming default risk is low.
- kristianp 8y agoIs that visible to the customer, or only in the bank's accounting?