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> also free future generations from your debts Only if the debt is not pegged to inflation In Chile at least, you can get a loan in “UF”, which is an inflatio
by nico 2y ago
> also free future generations from your debts
Only if the debt is not pegged to inflation
In Chile at least, you can get a loan in “UF”, which is an inflation-adjusted equivalent of the underlying currency. The value of UF changes with inflation (almost always going up). So the loan will just keep getting more expensive
Most mortgages there are in UF
- jandrese 2y agoDebtors see hyperinflation in neighboring countries and start getting nervous.
- tvaughan 2y agoRents are in UF. I’ve never seen a mortgage in UF. Some savings accounts also pay “interest” in UF.
- nico 2y ago> I’ve never seen a mortgage in UF ?? On this recent Reddit post in /r/Chile someone asks “does anyone know if there is a bank which offers mortgages in pesos instead of UF?” The answers all pretty much say they don’t even exist, or if the poster finds one to please let them know https://www.reddit.com/r/chile/comments/1ep21lq/hipotecario_en_pesos/ https://www.reddit.com/r/chile/comments/1ep21lq/hipotecario_... It looks like Chileans have never seen a mortgage _not_ in UF
- tvaughan 2y agoCan’t tell what exactly they think is in UF. Perhaps you mean the principle is in UF? That’s pretty meaningless though. The actual loan amount is converted to pesos when it’s finalized (the process can take months), and the APR is just some percentage of that. Source: Live in Chile, have mortgage in Chile in pesos.