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by craftyguy 2949 days ago
3.5% is low in the US, but it also depends on the duration and type of the loan.

Rates below 2% would be exceptionally rare, but you can't compare rates if you don't also consider the other terms of the loan.. Are your <1% loans for the full price of the home, or a reduced price after accounting for you paying for some percentage in cash? (in the US, known as a down payment)
1 comments
Danski0 2949 days ago
Loans are always approved up to 85% of home value, so 15% cash payment required. 1 - 1.5% loans are freely available with 1-5 years fixed rate. And you get 30% back of the interest paid from IRS yearly.

Repayment terms are usually 40-100 years and not uncommon that 3years in on a 100year repayment you refinance the 97% left on a new 100years repayment plan.

To put it into some numbers. A typical middle class income for a couple would be 85.000usd/year, 60.000usd after taxes. They buy a home for 320.000usd with a loan of 270.000usd. Interest cost $180/month.

I find it very interesting that the markets in many countries have similar movements but loans are nothing alike. Are country markets really so different or are some markets just broken and it will catch up one day?

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