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aren't recent owners locked into a monthly payment for the next 15/30 years? People don't really get ARMs anymore. A rate hike would only affect prospective bu

• xxpor 5y ago
  That's only true in the US. In nearly every other country you have ARMs or worse. In Canada, my understanding is the typical mortgage is done on a 30 year amortization, but the loan is due in 5 years with a balloon payment. You have to reapply for a new loan for the next 5. If you're denied, you're screwed.
  • sofixa 5y ago
    In most EU countries, including those discussed in the article, mortgage rates are fixed.
    • xxpor 5y ago
      I think there's some confusion about the meaning of fixed. In Germany, rates are fixed for a period of time for a lot of mortgages. That would be considered an adjustable rate mortgage in the US. Fixed rate in the US means it's fixed at loan origination for the entire life of the loan. https://www.fitchratings.com/research/structured-finance/covered-bonds/long-fixed-rate-periods-mitigate-german-mortgage-rate-rise-14-06-2021 https://www.fitchratings.com/research/structured-finance/cov... Edit, just found this: https://www.iamexpat.de/housing/german-mortgages/types-mortgages-germany https://www.iamexpat.de/housing/german-mortgages/types-mortg... Annuitätendarlehen is indeed the same as a US fixed rate.