3 ms·

Interest rates can be negative.

• acchow 6y ago
  Nominal interest rate (which is the rate quoted on your loan) cannot go negative. So your actual amortized payments for acquiring a home will never be subsidized by a "negative" mortgage APR.
  • reducesuffering 6y ago
    Any reasoning you want to give on this? Negative nominal interest rates already exist in European countries as a counterexample.
    • acchow 6y ago
      For a consumer to borrow funds the nominal rate is negative? Where have you seen this? I'd like to see a citation. The reason this rate cannot be negative is that demand will immediately fill it up and use it for arbitrage (shove the money under a mattress and pay back the loan later) before it can become negative.
• deleted 6y ago
  [deleted]