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Fannie May and Freddie Mac is the research starting point you want here. US mortgages are certainly subsidised by the taxpayer through some complex financial i
by Grimburger 4y ago
Fannie May and Freddie Mac is the research starting point you want here.
US mortgages are certainly subsidised by the taxpayer through some complex financial instruments and those two government owned corporations.
Funnily enough when I jest to American colleagues about it being socialism they seem confused and don't think that it is at all.
Many don't seem to realise just how drastic a 30 year fixed term is in every other financial market on Earth. I think the max you can fix in Australia is 3 years?
https://en.wikipedia.org/wiki/Fannie_Mae https://en.wikipedia.org/wiki/Fannie_Mae
https://en.wikipedia.org/wiki/Freddie_Mac https://en.wikipedia.org/wiki/Freddie_Mac
- maxerickson 4y agoThey pretty much have an implicit guarantee from the government, but they aren't government owned.
- Schnitz 4y agoThe irony is that because of the persistent low interest rates in the last decade it is more and more common to take out a 5/1 in the US because people think the slightly higher interest rate of a 15 or 30 year fixed is throwing away money. In fact, I know nobody except myself that got a fixed rate mortgage in the last few years. I certainly sleep better knowing that I don’t have to refinance in the next 2 years…