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The Case Against 30-Year Mortgages

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13 points paulpauper | 1 comments | 11 Oct 25 16:42 UTC | HN request time: 0.332s | source
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jstanley ◴[11 Oct 25 17:01 UTC] No.45550727[source]▶
This isn't about 30-year mortgages in the general case, this is about the US specifically, where a fixed-rate 30-year mortgage is typical, with a good rate and no early repayment penalty.

And yes it's insane, because if rates go up you leave it alone and if rates go down you remortgage at a lower rate.

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orochimaaru ◴[11 Oct 25 17:03 UTC] No.45550744[source]▶
Why is that insane? It’s good for the consumer, no?
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jstanley ◴[11 Oct 25 17:07 UTC] No.45550786[source]▶
It's insane because why would you offer such a product? You're giving the customer a free bet on interest rates.
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techblueberry ◴[11 Oct 25 17:33 UTC] No.45551015[source]▶
Free bet? You have to pay to refinance.
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1. orochimaaru ◴[11 Oct 25 22:13 UTC] No.45553118[source]▶
Not a whole lot. Also, if you have a generous enough mortgage agent they will assume the cost of the refi. I’ve done at least 2 refi’s in the past at $0.