Taxes only increase. Insurance only increases. In 10 years my mortgage will probably be a grand more each month…
Your mortgage is the same. Your taxes and/or insurance went up
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
I stand corrected- your mortgage may have gone up if you chose or live in a place where the rate adjusts
@Jamie
In the US it isn’t the place it is the type of mortgage you enter into. I do think some countries don’t have fixed 30 year mortgages though and use more of a LIBOR system but I could be mistaken.
@Brooke
Yeah, I’m on a 5-year fix in the UK and could go as low as 2-year fixed, or even a variable rate that isn’t fixed at all (e.g. one that tracks the base rate). 10-year mortgages are possible but I’ve personally never seen longer than that.
Edit: 10-year fix. You have to remortgage after that.
@Bran
Wait. So in the UK, the longest mortgage period is 10 years?
Jordan said:
@Bran
Wait. So in the UK, the longest mortgage period is 10 years?
No, the longest fix rate period is 10 years.
Jordan said:
@Bran
Wait. So in the UK, the longest mortgage period is 10 years?
No, the longest fix rate period is 10 years.
Oh. Got it. So fair to say most homebuyers in the UK have some sort of variable rate mortgage?
@Jordan
Yeah the 30 year fixed is fairly unique to the US (go America baby)
Noor said:
@Jordan
Yeah the 30 year fixed is fairly unique to the US (go America baby)
Almost everyone has a fixed rate in France
Noor said:
@Jordan
Yeah the 30 year fixed is fairly unique to the US (go America baby)
Almost everyone has a fixed rate in France
It’s good to know other countries have fixed rates too!
Noor said:
@Jordan
Yeah the 30 year fixed is fairly unique to the US (go America baby)
Easily one of the biggest underrated wealth building tools. You get to put a small percentage down and then benefit from inflation.
@Zephyr
Fixed rates definitely help in planning long-term finances without worrying about variable changes.
Noor said:
@Jordan
Yeah the 30 year fixed is fairly unique to the US (go America baby)
It’s interesting to see how mortgage systems vary across different countries.
@Jordan
You refix in periods of 2-5 years with a new fixed interest rate generally
Devi said:
@Jordan
You refix in periods of 2-5 years with a new fixed interest rate generally
That sounds like what an adjustable rate mortgage is here in the USA.
Yes, it’s similar but often with shorter periods between rate adjustments.
@Jordan
Regular adjustments can make budgeting challenging but also allow you to take advantage of lower rates.
Jordan said:
@Bran
Wait. So in the UK, the longest mortgage period is 10 years?
No, the longest fix rate period is 10 years.
This is what we would call a 10/1 ARM in the US.
I don’t know specifically about the UK, but my understanding is that most countries are also working with balloon mortgages, so you’re only paying interest and then make a lump sum payment when you refinance or close it out
Jordan said:
@Bran
Wait. So in the UK, the longest mortgage period is 10 years?
Yes, normally. But most people don’t go for those. Majority go for a 2-5 year fix. I believe there are a tiny number of longer fixes available based on a reliable comparison website, but I’ve personally never been offered longer than 10 years so they must be very niche.