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Maybe that’s because Americans move around more and can’t be nailed to a house for 15-30 years like every european homeowner is (where you can neither refinance
by formerly_proven 2y ago
Maybe that’s because Americans move around more and can’t be nailed to a house for 15-30 years like every european homeowner is (where you can neither refinance nor pay back early without paying essentially all future interest payments at once - US mortgage conditions are insanely good).
- rsynnott 2y agoIn general, in Europe, either: - It is the norm to use either a variable rate or series of short fixed rates OR - Redemption fee is capped (for instance in France it’s capped at one quarter worth of interest). I’m not sure it’s normal anywhere to have a 30 year fix which you can’t get out of? Which country are you thinking of?
- nasmorn 2y agoI got a 20 year fixed at 1.125% and I am really happy the bank can’t get out of it. I really did wonder why they even gave me that money but who am I to complain.
- Panzer04 2y agoIn AU the standard is a floating rate mortgage, with most fixed alternatives capping out at 5 years (which obviously has much more limited up and downside than a longer duration 30y equivalent). Those fixed loans can be more or less expensive than the variable rate, depending on market conditions.