4 ms·
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"
by 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 agoLiving 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 agoIt’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 agoRight, 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".