Posted on 03/25/2016 8:14:25 AM PDT by Lorianne
Think there's a housing affordability crisis in Britain, with low mortgage rates likely to drive house prices even higher?
Take a look at Sweden where lending policies have been more generous, and where house price inflation has been (at least recently) more extreme.
A number of banks and analysts have warned that Sweden's housing market is overheating, with HSBC in January saying: "The pace of acceleration in the housing market points to a bubble."
Now Sweden is dealing with its overheated housing market by reining in mortgage availability.
Regulators introduced restrictions which will mean mortgage terms - the time homebuyers have to clear the debt - will be drastically reduced to just... 105 years.
The move comes because historically there has been no time limit on mortgage duration.
(Excerpt) Read more at telegraph.co.uk ...
I agree. 15 year mortgages are as high as I go.
Or as our leaders like to call it emanate domain you can never keep your land comrade.
House mortgages in excess of 100 years are designed to keep people enslaved their entire lives.
A person only becomes independent when they have absolutely no debt.
Governments like long term mortgages because they can better control the population by having them worry about losing their job and being unable to pay the mortgage.
Well, you still have property tax. But I imagine that is quite reasonably priced under Scandinavian socialism. < /s>
At 4% interest, it only costs 1.15% more per month to pay off a mortgage in 105 years instead of 140. Even 50 years is only 15% more.
140 0.00%
105 1.15%
100 1.50%
90 2.44%
80 3.88%
70 6.11%
60 9.61%
50 15.28%
40 24.91%
30 42.69%
20 81.12%
15 121.08%
Swedish housing is built to last.
But who gets the house when you die? Does the bank own it or are you allowed to will it to your kids, who take over the payments, and then will it to their kids....
15 is the only way to go. I can’t wait to be mortgage free.
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