5 ms·
Is that rate fixed for 30 years?
by switch007 5y ago
Is that rate fixed for 30 years?
- apexalpha 5y agoNo, 20 years fixed rate on a 30 year mortgage.
- jdasdf 5y agoIt's practically impossible to get fixed rates in europe.
- apexalpha 5y agoIt's not in the Netherlands. Practically everyone has fixed rates here. Especially in the past few years with the low interest rates.
- smcl 5y agoFixed for the entire duration of the mortgage, and at the rate the commenter mentioned?
- apexalpha 5y agoMine is fixed for 20 on a 30 year mortgage but you can always choose between variable, 10 year fixed, 20 year or 30 year. Mortgages are (almost) always 30 years duration. I don't know what country in Europe you can't get fixed rates but it's not the Netherlands, that I know for sure. (Also there really isn't a 'Europe' for these things, every country is different)
- jason-phillips 5y ago> Mine is fixed for 20 on a 30 year mortgage In the United States we don't call that "fixed". We call that an adjustable rate mortgage. For example, my mortgage is fixed at 3% for its entire 30 year term and can properly be called "fixed". People in the United States are leery of ARMs after what happened during the mortgage crisis in 2006-2011 so proper labeling is more important.
- apexalpha 5y agoAh, right. I could also have picked 30 years for a 'real' fixed mortgage. It just gets a bit more expensive. But it's definitely possible to get 30 year fixed if you really want to, every bank offers it. In the Netherlands an 'adjustable rate mortgage' means monthly, quarterly or yearly variable rates.
- refurb 5y agoAdjustable rate mortgages aren't quite the same. Canada is similar to the UK - you amortize (pay back) the loan over 25-30 years. However, your mortgage is either variable (interest rate floats over time) or fixed (interest rate does change), but the loans are only for 1 to 5 years. At the end, you either "renew" your mortgage with the same lender or you "refinance" entirely. So you can have a "fixed" mortgage, but not for the entire amortization period. But you're correct, it's more similar to the ARM mortgages in the US (potentially fixed for 5-10 years, then floating after).
- smcl 5y agoAh so what I meant is that in Czech Republic I have a 30 year mortgage with a rate that is fixed at 1.99% for 5 years, and is then variable (or more likely renegotiated) after that period. I am sure I could have instead gotten a 30 year mortgage with a single rate for the duration, but I suspect it would've been higher than the rate. But if you're at a 2% for 20 years that is pretty great IMO - given that our rates are currently through the roof.
- room271 5y agoIn the UK it's very common, albeit not for 30 years - more often 2, 5, or 10. See e.g. https://www.bankofengland.co.uk/bank-overground/2020/why-are-more-borrowers-choosing-long-term-fixed-rate-mortgage-products https://www.bankofengland.co.uk/bank-overground/2020/why-are... (In 2020, more than half of new mortgages were fixed for 5 years or more.)
- moonchrome 5y agoThat's not fixed rates, that's just variable rate with a delay, it's impossible to get a 30 year loan with a fixed rate in Croatia.
- colinb 5y agoNo. That’s not the case. I had a fixed rate mortgage in the UK. Now I have one in Ireland. Two of my colleagues have taken them in the last couple of months. They’re very common. But.. in both countries such terms are for a relatively short period. E.g 5 years fixed changing to SVR for the remainder of the loan. I haven’t heard of loans fixed for the entire duration. I would’ve got one if I had found it. I can’t speak for the rest of Europe. It’s a big place you know.
- xyzzyz 5y agoThat’s not what Americans mean by “fixed rate”. In US, that means 30, or more rarely 15 year mortgage, where the rate is fixed for entire duration. The mortgage where it’s only fixed for some initial period is called “adjustable rate mortgage”. Your comment just supported the person you replied to being correct, that fixed rate (in US sense) mortgage market is nonexistent in most of Europe.
- the_mitsuhiko 5y agoYou can absolutely have a 30 year mortgage that is fixed all the way through. It's rare that people take it though, most opt to 5-10 years fixed with variable late afterwards from my own experience (Austria). The standard product used to be fixed rate.
- namdnay 5y agoIn France 99% of mortgages are fixed rate, for the entire term.
- IMSAI8080 5y agoThey're often called "lifetime fixes" or "fixed for term" in the UK. You can easily get them. The term customers choose is typically 25 years rather than 30. However they are currently running at an interest rate of a little under 4% which is much higher than the rate offered on a typical 5 year year fix. This makes them unattractive when you can just perpetually keep re-mortgaging on 5 year fixes.
- 5y ago
- vladvasiliu 5y agoAs others have said, "Europe" doesn't exist for things like mortgages. In France, for example, the standard mortgage is fixed rate, for the whole duration of the loan, which is usually 20 to 25 years.
- jgb1984 5y agoUhm my brother just signed a fixed rate of 1.8% for the entire 20 year duration of his home loan. Belgium.
- modo_mario 5y agowhat? I got a fixed below 1% rate in Belgium last year. With historical lows on those everyone gets a fixed rate.