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Fixed rates have been close to 1% in Italy for a long time. I don't think anybody went adjustable rates in the last years, it could get negative (I think it hap
by pmontra 5y ago
Fixed rates have been close to 1% in Italy for a long time. I don't think anybody went adjustable rates in the last years, it could get negative (I think it happened somewhere in northern Europe) but it can easily grow and bankrupt people in the 10 - 20 years lifespan of a mortgage.
- jopsen 5y agoLots of people go variable interest rate. It's cheaper and has been for many years.. The argument is that when interest rates go up, you refinance at a fixed rate while you can afford it, or sell stocks to payoff a larger portion of you morgage. That strategy certainly has issue, because stocks will probably crash a bit when interest rates go up. On the flip side, interest rates will go up slowly, so you might be able to refinance to fixed rate -- the hard part is doing this before it's too expensive. As it'll always be more expensive than sticking with your variable rate.