4 ms·
No? In the US a residential mortgage is almost always fixed rate, locked in for the entire term (i.e. 30 years). So it can basically never go up, just down if t
by deanmoriarty 4y ago
No? In the US a residential mortgage is almost always fixed rate, locked in for the entire term (i.e. 30 years). So it can basically never go up, just down if the opportunity arises and you can willingly refinance your loan as interest rates drop.
- cjrp 4y agoThat's interesting, in the UK it's generally fixed for 2/3/5 years but then reverts to a pretty lousy rate (unless you remortgage to another fix). If you're lucky you fixed just before this all started, and won't have to remortgage for another few years when rates might be dropping again.
- ghaff 4y agoThere are adjustable rate mortgages in the US, but far and away the norm is 15 or 30 year fixed.
- TomatoTomato 4y agoOTOH, almost all commercial loans including real estate is adjustable in the US.
- bamboozled 4y agoI believe Australia is the same.
- seansmccullough 4y agoYour principal and interest payment can never go up, but your property tax (which is included as escrow on your mortgage) definitely can. I live in Texas, and my mortgage will be $400 a month more next year because of rising property tax.
- lijogdfljk 4y agoBut that would go up at the same rate as renting, no? I imagine you're replying mostly to the "mortgage stays fixed" comment, but relatively speaking i think it still holds true. Sure, taxes may change, but so does the value of the dollar, etc. In theory every cost you pay as an owner, you pay as a renter - just with less time investment as a renter. It's a convenience fee.