18% interest on $30,000 is just as much as 6.5% interest on $2,000,000 pal, work harder and stop buying so much avocado toast.
I don’t know how the US ended up with a rate locked 30 year mortgage as the norm but I am thankful for it.
I could bought a 3000sqft house in Canada just outside of Toronto for 900k (5% mortgage, 20% down) or another one in Spain just outside of Valencia with 250 sqm for 550k (1% mortgage for 30 years, 20% down). The house is Canada was newer and new fixtures and appliances yet it was a no brainer.
wtf is a 5-year mortgage?
Y’all should try some of these awesome new 50-year mortgages!
For Americans wondering what a 5-year mortgage is:
A 5-year mortgage doesn’t mean the mortgage is paid off in 5 years, it means that you must renegotiate the mortgage after 5 years (kind of like taking a new mortgage on the balance of what you owe, using whatever the interest rates are at the time.)
That kind of mortgage is not very common in the US, but it is the standard way it is done in many other countries. For example, my 5-year mortage is up for ‘renewal’ next year (5 years after I got it), but my house won’t be paid off for at least 20 more. Given how low interest rates were 5 years ago, I really should have opted for a 10 or 15 year mortgage…
The graph barely dips below 5% yet the article says the lowest 5-year term was 2.79% in 2021. From what I remember the lowest was around that time but was lower than 2.79%.
What is this based on? I got a 5 year fixed last year for way less than 6.
Btw for all you mortgage holders out there i changed my payment frequency from monthly to weekly and it cut like 3.5 years off my mortgage. Banks won’t tell you about it when you sign its technically an “accelerared” schedule and i pay a bit more per year (some months hace 5 payments in them) but nothing crazy
I’m surprised it never really dips below 5%. In the UK, we had a 5 year fix on a first time buy in 2017 that was 3%. There were people getting 5 year fixes at less than 2% for a few years.
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Who pays off a mortgage in five years?
18% interest on $30,000 is just as much as 6.5% interest on $2,000,000 pal, work harder and stop buying so much avocado toast.
I don’t know how the US ended up with a rate locked 30 year mortgage as the norm but I am thankful for it.
I could bought a 3000sqft house in Canada just outside of Toronto for 900k (5% mortgage, 20% down) or another one in Spain just outside of Valencia with 250 sqm for 550k (1% mortgage for 30 years, 20% down). The house is Canada was newer and new fixtures and appliances yet it was a no brainer.
wtf is a 5-year mortgage?
Y’all should try some of these awesome new 50-year mortgages!
For Americans wondering what a 5-year mortgage is:
A 5-year mortgage doesn’t mean the mortgage is paid off in 5 years, it means that you must renegotiate the mortgage after 5 years (kind of like taking a new mortgage on the balance of what you owe, using whatever the interest rates are at the time.)
That kind of mortgage is not very common in the US, but it is the standard way it is done in many other countries. For example, my 5-year mortage is up for ‘renewal’ next year (5 years after I got it), but my house won’t be paid off for at least 20 more. Given how low interest rates were 5 years ago, I really should have opted for a 10 or 15 year mortgage…
The graph barely dips below 5% yet the article says the lowest 5-year term was 2.79% in 2021. From what I remember the lowest was around that time but was lower than 2.79%.
What is this based on? I got a 5 year fixed last year for way less than 6.
Btw for all you mortgage holders out there i changed my payment frequency from monthly to weekly and it cut like 3.5 years off my mortgage. Banks won’t tell you about it when you sign its technically an “accelerared” schedule and i pay a bit more per year (some months hace 5 payments in them) but nothing crazy
I’m surprised it never really dips below 5%. In the UK, we had a 5 year fix on a first time buy in 2017 that was 3%. There were people getting 5 year fixes at less than 2% for a few years.
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