4 ms·

Where do you live that you can fix a mortgage rate for 30 years? This is impossible (or at least, highly rare) in Australia (you can get a fixed rate but only f

Where do you live that you can fix a mortgage rate for 30 years? This is impossible (or at least, highly rare) in Australia (you can get a fixed rate but only for up to ~5 years).

teekert 6y ago
In the Netherlands 10 years was the norm, now, judging from people I know, it's 20 years.
nemo44x 6y ago
In the USA it’s pretty standard. The 30 year fixed rate mortgage is probably the most popular by far. And then you refinance it over time as rates fall. Adjustable rate mortgages exist too but got a lot of people in trouble in 2008. I think a lot of them are only allowed to adjust by a certain percentage regardless of interest rates each year they’re eligible to.
- cbm-vic-20 6y ago
  And this isn't a recent trend, either. The 30 year fixed rate mortgage has been pretty standard since at least the 1980s.
- spacedcowboy 6y ago
  It also keeps the minimum payment lowish - I went for a 30-year fixed, refinanced it once when rates went crazy low, and paid roughly double what I needed to (apart from months when I couldn’t). It paid off in ~13 years. I could have got a 15-year fixed on slightly lower rates, but the flexibility was worth the rate delta for me.
seppel 6y ago
It is no problem is Germany but expensive. I personally had not problem to fix it for 10 years and decide then.
rwmj 6y ago
In the USA it's apparently common, but seems unusual everywhere else. In the UK, 5 years is the maximum and 2 years is more common. People rely on rolling over the mortgage to a new fixed-rate offer, but that can be problematic as it's not guaranteed that good offers will be available after the fixed term, and as many found out in 2009, it's not guaranteed that fixed rate mortgages will be available at all. Also it costs a ton of money and time to roll over the mortgage because you're essentially buying the house all over again.
- spacedcowboy 6y ago
  You can get 10-year fixed in the UK {1], and even that limit is surprising to me. I thought 20-year fixed was available (pretty sure it used to be) but apparently no more... [1] https://moneyfacts.co.uk/mortgages/10-year-fixed-rate/ https://moneyfacts.co.uk/mortgages/10-year-fixed-rate/
- throw0101a 6y ago
  You can get 10-year fixed rates in Canada: * https://www.ratespy.com/best-mortgage-rates/10-year/fixed https://www.ratespy.com/best-mortgage-rates/10-year/fixed * https://www.ratehub.ca/best-mortgage-rates/10-year/fixed https://www.ratehub.ca/best-mortgage-rates/10-year/fixed
- rsync 6y ago
  "In the USA it's apparently common, but seems unusual everywhere else." It's not just common in the US, it is the de facto standard across almost all mortgage types and sizes. Even weird, non-conforming properties with "jumbo" sized loans can get fixed at 30 years. Also, I will point out that in both Switzerland and the Nordic Countries, 40 and 50 year mortgages are now in very common use: "Repayment periods in Switzerland can be incredibly long, with deals lasting between 50 and 100 years being relatively common."[1] "Swedish regulators calculated in 2013 that the average mortgage term was around 140 years."[2] In fact, now that I think about it, I am surprised that the US culture of "financial innovation" has not produced more standardized long-duration mortgages ... I do not know anyone, for instance, with a 40-year term ... [1] https://www.expatica.com/ch/housing/buying/your-guide-to-swiss-mortgages-108440/ https://www.expatica.com/ch/housing/buying/your-guide-to-swi... [2] https://www.thelocal.se/20160324/sweden-limits-mortgage-loans-to-105-years https://www.thelocal.se/20160324/sweden-limits-mortgage-loan...
astura 6y ago
It's standard in the USA because of government policy. (Mainly Fannie Mae and Freddy Mac). 30 year fixed rate wouldn't exist in the free market. https://www.marketplace.org/2018/10/31/why-do-we-have-30-year-mortgage-anyway/ https://www.marketplace.org/2018/10/31/why-do-we-have-30-yea...
- throw0101a 6y ago
  You can get 10-year fixed rates in Canada: * https://www.ratespy.com/best-mortgage-rates/10-year/fixed https://www.ratespy.com/best-mortgage-rates/10-year/fixed * https://www.ratehub.ca/best-mortgage-rates/10-year/fixed https://www.ratehub.ca/best-mortgage-rates/10-year/fixed For down payments <20% mortgage insurance is needed (usually from the federal government subsidiary, like Fannie/Freddie), but not for larger down payments: that's all free market. Some institutions offer 18- and 25-year terms.
- harperlee 6y ago
  A fixed rate is just a derivative product (an Interest Rate Swap) attached to the mortgage, and people are happy to buy and sell them, why would you say it would not exist in a free market? Case in point: there is no such government policy in Spain, yet most banks happily offer fixed rates. You just need to hedge the fixed mortgage you are selling and add some interest to make profit.
- rmujica 6y ago
  30 year fixed rate is quite common in Chile, and the mortgage and housing industry is fully deregulated here
llimos 6y ago
In Israel it's fairly standard. In fact, you're only allowed a third of the mortgage to _not_ be fixed.

Where do you live that you can fix a mortgage rate for 30 years? This is impossible (or at least, highly rare) in Australia (you can get a fixed rate but only for up to ~5 years).

teekert 6y ago

In the Netherlands 10 years was the norm, now, judging from people I know, it's 20 years.

nemo44x 6y ago

In the USA it’s pretty standard. The 30 year fixed rate mortgage is probably the most popular by far. And then you refinance it over time as rates fall. Adjustable rate mortgages exist too but got a lot of people in trouble in 2008. I think a lot of them are only allowed to adjust by a certain percentage regardless of interest rates each year they’re eligible to.

cbm-vic-20 6y ago
And this isn't a recent trend, either. The 30 year fixed rate mortgage has been pretty standard since at least the 1980s.
spacedcowboy 6y ago
It also keeps the minimum payment lowish - I went for a 30-year fixed, refinanced it once when rates went crazy low, and paid roughly double what I needed to (apart from months when I couldn’t). It paid off in ~13 years. I could have got a 15-year fixed on slightly lower rates, but the flexibility was worth the rate delta for me.

seppel 6y ago

It is no problem is Germany but expensive. I personally had not problem to fix it for 10 years and decide then.

rwmj 6y ago

In the USA it's apparently common, but seems unusual everywhere else. In the UK, 5 years is the maximum and 2 years is more common. People rely on rolling over the mortgage to a new fixed-rate offer, but that can be problematic as it's not guaranteed that good offers will be available after the fixed term, and as many found out in 2009, it's not guaranteed that fixed rate mortgages will be available at all. Also it costs a ton of money and time to roll over the mortgage because you're essentially buying the house all over again.

spacedcowboy 6y ago
You can get 10-year fixed in the UK {1], and even that limit is surprising to me. I thought 20-year fixed was available (pretty sure it used to be) but apparently no more... [1] https://moneyfacts.co.uk/mortgages/10-year-fixed-rate/ https://moneyfacts.co.uk/mortgages/10-year-fixed-rate/
throw0101a 6y ago
You can get 10-year fixed rates in Canada: * https://www.ratespy.com/best-mortgage-rates/10-year/fixed https://www.ratespy.com/best-mortgage-rates/10-year/fixed * https://www.ratehub.ca/best-mortgage-rates/10-year/fixed https://www.ratehub.ca/best-mortgage-rates/10-year/fixed
rsync 6y ago
"In the USA it's apparently common, but seems unusual everywhere else." It's not just common in the US, it is the de facto standard across almost all mortgage types and sizes. Even weird, non-conforming properties with "jumbo" sized loans can get fixed at 30 years. Also, I will point out that in both Switzerland and the Nordic Countries, 40 and 50 year mortgages are now in very common use: "Repayment periods in Switzerland can be incredibly long, with deals lasting between 50 and 100 years being relatively common."[1] "Swedish regulators calculated in 2013 that the average mortgage term was around 140 years."[2] In fact, now that I think about it, I am surprised that the US culture of "financial innovation" has not produced more standardized long-duration mortgages ... I do not know anyone, for instance, with a 40-year term ... [1] https://www.expatica.com/ch/housing/buying/your-guide-to-swiss-mortgages-108440/ https://www.expatica.com/ch/housing/buying/your-guide-to-swi... [2] https://www.thelocal.se/20160324/sweden-limits-mortgage-loans-to-105-years https://www.thelocal.se/20160324/sweden-limits-mortgage-loan...

astura 6y ago

It's standard in the USA because of government policy. (Mainly Fannie Mae and Freddy Mac). 30 year fixed rate wouldn't exist in the free market. https://www.marketplace.org/2018/10/31/why-do-we-have-30-year-mortgage-anyway/ https://www.marketplace.org/2018/10/31/why-do-we-have-30-yea...

throw0101a 6y ago
You can get 10-year fixed rates in Canada: * https://www.ratespy.com/best-mortgage-rates/10-year/fixed https://www.ratespy.com/best-mortgage-rates/10-year/fixed * https://www.ratehub.ca/best-mortgage-rates/10-year/fixed https://www.ratehub.ca/best-mortgage-rates/10-year/fixed For down payments <20% mortgage insurance is needed (usually from the federal government subsidiary, like Fannie/Freddie), but not for larger down payments: that's all free market. Some institutions offer 18- and 25-year terms.
harperlee 6y ago
A fixed rate is just a derivative product (an Interest Rate Swap) attached to the mortgage, and people are happy to buy and sell them, why would you say it would not exist in a free market? Case in point: there is no such government policy in Spain, yet most banks happily offer fixed rates. You just need to hedge the fixed mortgage you are selling and add some interest to make profit.
rmujica 6y ago
30 year fixed rate is quite common in Chile, and the mortgage and housing industry is fully deregulated here

llimos 6y ago

In Israel it's fairly standard. In fact, you're only allowed a third of the mortgage to _not_ be fixed.