I read a comment on a post about high rent that said that, “[they probably] bought a $550,000 house with a built in basement suite to help cover [their] 2.1% mortgage 4 years ago and [they] just had to resign at 6.8%”.
Please what renewing or resigning means in this context. I’ve never bought a house and I barely know about mortgages from movies. TIA!
In: Economics
This is probably a case of Americans being blind to how the rest of the world operates in terms of mortgages. The US is fairly unique in having fixed rate 30-year mortgages (or even 15-year ones). The Federal government subsidizes this through certain Government corporations, including Fannie Mae, Freddie Mac, and Ginnie Mae.
The rest of the world still calculates the payments on a 30-year basis, but resets the interest rate every 5 years or so.
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