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Yes, I heard that with Sweden mortgage you're not really buying your house but kind of renting it to the bank. You know you're never going to pay it off.
by eloisant 6y ago
Yes, I heard that with Sweden mortgage you're not really buying your house but kind of renting it to the bank. You know you're never going to pay it off.
- bjoli 6y agoWhere I live (a city about 2 hours from Stockholm) paying it off over 20-30 years is still doable, at least as long as itnerest stays below 3%. We payed off almost 15% of our house in about 5 years. Whether it is financially sound is another matter. Interest rates have been low for many years, and investing has been a better choice for some time. Many pay their houses off to about 50% and then leave it there at the default mortgage, only loaning more money when something needs to be done on the house.
- dagw 6y agoWhether it is financially sound is another matter. Yea, this is a big cause of the current 'problem'. It's not so much that people cannot pay off their mortgage in 30ish years, it's that the current financial climate heavily disincentives people from doing so.
- occz 6y agoThis used to be true, but you are now required to pay down the loan by law. Restrictions are the following: - Maximum loan is 85% of property value (min down payment 15%) - Annual pay down 2% until at 75% of property value - Annual pay down 1% until at 50% of property value - An additional 1% annual pay down if you have borrowed more than a multiple of your annual income (either 4.5x or 5.5x, can't remember exactly) Used to be that you just borrowed 100% and paid down nothing, kind of absurd to be honest.