Guardian Economist Greg Jericho shows - with interactive graphs - how the RBA’s interest rate policies have missed the mark and depressed Australian living standards in an unprecedented way.
Guardian Economist Greg Jericho shows - with interactive graphs - how the RBA’s interest rate policies have missed the mark and depressed Australian living standards in an unprecedented way.
In the US, the vast majority of mortgages have a fixed rate over decades.
90% of mortgages are fixed-rate for 30 years according to this page: https://www.mortgagecalculator.org/helpful-advice/how-many-years-mortgage-loan.php
I don’t know the details of how that works, but yeah, it’s possible for the vast majority of home borrowers to be on fixed rates.
not just the yanks, I have a mate from france I caught up with earlier this week who could not comprehend how a home loan had a variable rate. She thinks we’re all insane.
Fixed rate for the entire term? Fascinating
That’s a good deal if you get s good deal.
Essetially “socalism”, In the US Goverments backed Fannie Mae and Freddie Mac, so commercial banks had to compete for loans.
We’d need a government bank to do the same, I think its part of The Greens policy to reestablish one and offer them? but we’d need way more voters to pivot Green, thay seems unlikely, so we’re left with the same stupid, repeating the same stupid mistakes… we sold the last Government bank off.
Or legislation and that’s never going to happen with ALP/LNP.
Basically you sign up for the loan. There are usually exit penalties for paying off early. But eg, if interest rates go down, it may be beneficial to pay out the old loan and refinance a new loan with better rates, lower payments or reduced life.of the loan
What it means in practice is that your monthly payments should never need to increas, unless you choose to do so.