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Wait, do mortgages in the USA get cheaper with lower rates? In Europe it appears that they’re always the maximum the people will be willing to pay. The only eff
by lrem 3y ago
Wait, do mortgages in the USA get cheaper with lower rates? In Europe it appears that they’re always the maximum the people will be willing to pay. The only effects of negative base rates was house prices launching into the stratosphere. The cheapest place on the market in my suburb is 1.75 million USD for a two bedrooms condo (80m^2 = 861ft^2) with one parking spot.
- breput 3y agoNo[*], but the monthly payments get more affordable. The principal doesn't change but if you're paying 3% on a mortgage and possibly getting a tax deduction on that interest so it might effectively be more like 2.5%, then you can decide to pay that down more if you're earning more on other investments. [*] It's arguable that low interest rates cause housing prices to rise, since more people can afford monthly payments on more expensive houses.