4 ms·
Are you saying in the USA your fixed rate lasts for 30 years? Its there a significant premium on the duration? In the UK fixed rates last 2 or 5 years.
by neuroma 5y ago
Are you saying in the USA your fixed rate lasts for 30 years?
Its there a significant premium on the duration?
In the UK fixed rates last 2 or 5 years.
- seibelj 5y agoThe USA is unique in that the standard mortgage is 30 years with a fixed rate. We also have a huge refinance industry, as everyone who gets locked in at a higher rate wants to refinance when rates drop. Also the rates are artificially low as the government backstops the vast majority of residential home mortgages. In a free market the rates would be a lot higher, but they are subsidized by the government.
- deleted 5y ago[deleted]