> 30 year fixed rate mortgages
Wait, what? Americans can fix for 30 years?!! The longest I've seen in Australia is 7 years fixed, but the usual home loan is 3-5 years fixed and then a renewal at the new market rate.
Wait, what? Americans can fix for 30 years?!! The longest I've seen in Australia is 7 years fixed, but the usual home loan is 3-5 years fixed and then a renewal at the new market rate.
It might have been a pretty good deal for the people who bought homes with 25 year 0.7-0.9% interest rate mortgages these last few years.
https://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=304.RAI.M....
Another question - with a normal fixed interest loan for 30 years, does that normally include paying off the principal? I.e after the 30 years, the loan is paid off?
Here, fixed interest usually don't pay down the loan whereas a variable loan pays down 100% of the principal after the 30 years
Also you always own the home as long as you are meeting the terms of the mortgage contract.
Fixed for 30 years plus paying down the principal is genuinely mindblowing to me, especially at the fixed interest rates of last year.