Originally Posted by free4now
In other countries mortgages are not fixed for 30 years but rather adjustable. I could see that happening here in the USA; the one part of the whole subprime fiasco that won't go away is that people are going to have to self-insure against financial risk. The guv is no longer going to be able to fix your housing costs for 30 years.
I tried the link, but it did not work for me. So, I have to read following posts after the OP to make the following comments.
I am afraid Americans are spoiled and no elected officials would dare say no to us, meaning 30-yr fixed mortgages have to stay. Then, how are things going to work out? Oops, forgot that "No one knows".
And about foreign mortgages having floated interest rates, I recently read that citizens of some Eastern European countries (Hungary? Czech? I forget) had to obtain mortgages in Euro, though they have not joined the Euro zone! That is now hurting them to no end, since their local currency has been down.
About housing, we've got to admit that Americans have been "overhoused". Construction of McMansions goosed up the GDP, and created many jobs that were transient in nature. Once the boomers age, the maintenance and operating costs are going to kill us. I'd better start looking to downsize in a few years.