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Most mortgages in the US can also be paid off with no penalty - fixed or not. A purchaser should prefer fixed if they are available, and only use a variable rat
by matwood 4y ago
Most mortgages in the US can also be paid off with no penalty - fixed or not. A purchaser should prefer fixed if they are available, and only use a variable rate loan for specific circumstances. The low rates of the last few years compressed the rate difference between fixed and variable, that it made almost zero sense to get a variable rate loan.
- rockbruno 4y agoI see, that's the difference then. In Sweden the fixed ones penalize you for paying extra.
- matwood 4y agoIn the US some can have prepayment penalties, but it's not common. All the loans I've ever been presented (car, house, etc...) were simple interest loans. I would never sign one that was anything other than simple interest.