> I've read that the mortgage interest rates are around 2-3% in Europe
From what I understand, these aren't fixed rate 30-year. The rate can change year to year. The US is unique in offering one interest rate that will be consistent for 30 years.
From what I understand, these aren't fixed rate 30-year. The rate can change year to year. The US is unique in offering one interest rate that will be consistent for 30 years.
The rates were actually going up at that time - if we could have borrowed 6 months earlier we would likely have had even better rates. Also if you can borrow for a shorter period of time the rates get much lower.
I know in Canada the longest mortgage term you can get is 10-years and you pay a substantial premium over 5 years. Mortgages are still amortized over 30.
What that means is if interest rates go from 2% to 6% over a 5 year period, you have to renew your mortgage at the much higher rate.
In the US, if you never move, your mortgage payment might never change for 30 years.