4 ms·
There is no fixed rate loan. It's all variable. There is a trader (might be the bank) that is buying variable rate and selling you a fixed rate. If he goes bank
by csomar 4y ago
There is no fixed rate loan. It's all variable. There is a trader (might be the bank) that is buying variable rate and selling you a fixed rate. If he goes bankrupt, somebody will be holding the bag.
You might want to re-read your terms if the interest rates get much higher.
- bearjaws 4y agoProof?
- csomar 4y agoBanks get their liquidity from the Fed. Afaik, this liquidity is sold with variable interest rate (but I might be wrong or there might be some government program for that).
- fshbbdssbbgdd 4y agoI read my mortgage and there’s nothing in there that entitles the lender to raise the rate in any circumstances. The interest-rate risk is on whoever owns the bonds to that ultimately funded the mortgage. The value of those bonds is going down as interest rates rise.
- jjav 4y ago> There is no fixed rate loan. Most loans in the US are fixed rate for the life of the loan.
- deleted 4y ago[deleted]