4 ms·
WTF? Normal mortage is 20-25 years down payment, I've never heard anyone having even a 35 year down payment, let alone 90 years.
by Thlom 8y ago
WTF? Normal mortage is 20-25 years down payment, I've never heard anyone having even a 35 year down payment, let alone 90 years.
- ido 8y agoI too remember reading this, but about Stockholm not Norway.
- michaelt 8y agoIn the UK there's such a thing as an "interest-only mortgage" where you don't pay down the principal at all! Which of course means lower monthly payments. The theory is, if your mortgage interest rate was X% but some other investment like the stock market had much higher returns, a sophisticated investor might want to take the money they would have spent on repaying the principal and instead put it into that better-performing investment, then after 20 years pay off the mortgage principal with said investment. Post-financial-crisis rules were put in place that mean banks actually have to ensure you're _making_ that higher-performing investment.