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> They're don't really come from the lending industry - lenders could not and would not ever create this product on their own. I was going to quibble with this

> They're don't really come from the lending industry - lenders could not and would not ever create this product on their own. I was going to quibble with this since I’ve seen fixed rate mortgages in Ireland but… > A fixed rate mortgage is a home loan for which the interest rate is kept the same for an agreed amount of time. The maximum length of time for which a mortgage can be fixed in Ireland is ten years. https://personalbanking.bankofireland.com/articles/my-first-home/looking/fixed-vs-variable-rate-mortgage/#:~:text=A%20fixed%20rate%20mortgage%20is%20a%20home%20loan,so%20what%20is%20a%20variable%20rate%20mortgage%20then%3F https://personalbanking.bankofireland.com/articles/my-first-...

xyzzy123 4y ago
Yes and the rates will tend to be considerably different - you will actually see a risk premium in the longer terms, as you would expect. The fact that "cheap" 30 year fixed rate mortgages only exist in a few countries (US is only one I know of, but it's a big world) is the most accessible evidence that they're created by government policy (without having to dig into the technical details of how they are originated and guaranteed).
- maxerickson 4y ago
  Living in the US, I can't imagine taking out the maximum mortgage that I theoretically qualify for. (without having done it, I think I don't like the idea of 1/2!)
  - denimnerd42 4y ago
    It’s pretty easy to take out the maximum if you’re trying to buy a home without contingency on selling your previous one. Since only the monthly payments really matter towards qualification you could be 90% paid off on your first mortgage and still need to work around the DTI limit for your second. When you sell your first everything becomes comfortable again.
    - maxerickson 4y ago
      Right, I wasn't saying "I can't imagine a scenario where taking out the maximum would be an acceptable short term decision", I was saying "I can't imagine buying a house with the plan to make the maximum payments I qualify for over the long term".

xyzzy123 4y ago

Yes and the rates will tend to be considerably different - you will actually see a risk premium in the longer terms, as you would expect. The fact that "cheap" 30 year fixed rate mortgages only exist in a few countries (US is only one I know of, but it's a big world) is the most accessible evidence that they're created by government policy (without having to dig into the technical details of how they are originated and guaranteed).

maxerickson 4y ago
Living in the US, I can't imagine taking out the maximum mortgage that I theoretically qualify for. (without having done it, I think I don't like the idea of 1/2!)
- denimnerd42 4y ago
  It’s pretty easy to take out the maximum if you’re trying to buy a home without contingency on selling your previous one. Since only the monthly payments really matter towards qualification you could be 90% paid off on your first mortgage and still need to work around the DTI limit for your second. When you sell your first everything becomes comfortable again.
  - maxerickson 4y ago
    Right, I wasn't saying "I can't imagine a scenario where taking out the maximum would be an acceptable short term decision", I was saying "I can't imagine buying a house with the plan to make the maximum payments I qualify for over the long term".