5 ms·
Are mortage rates that high everywhere in the US? 7%, or 6.625% sound ridiculous to me in norther europe. I pay 4.54% now with roling 3 month-fixed rates, but i
by patall 2y ago
Are mortage rates that high everywhere in the US? 7%, or 6.625% sound ridiculous to me in norther europe. I pay 4.54% now with roling 3 month-fixed rates, but its going down now, and I could get it for 3.55% if I fixed it for 5 years. 30 years fixed is pretty much impossible here in Sweden. But you get ~30% of your interest back as tax deduction, so effectively I am borrowing at ~3% (in SEK). Which, again, is cheaper than 4.5% in the US in 2019!!!, a time when my parents could borrow 20 years fixed at ~2.2% (in the euro zone).
- sneed_chucker 2y agoThe majority of mortgages in the US are fixed rate with a 30 year term. Mortgages originating now will have a rate in the 7% ballpark. In 2021 you could get mortgages with a 2.5% fixed rate. However, it's common for people to refinance down to a lower rate when they come available, so lots of American homeowners have rates in the 2-3% range.
- patall 2y agoMakes sense, thank you! Actually that would go in line with my suspicion that 'the market' predicts/trends towards a 2 USD = 1 EUR rate within one or two decades.