30 Year Fixed Rate – Overrated?
They are the foundation of the American housing market. But do we really need the 30 year fixed rate mortgage?
Outside of the U.S. and Denmark, 30-year fixed-rate mortgages are generally unavailable. Variable rates are the norm, and people live quite well with them. The U.S. homeownership rate is around 68%. That is within a percentage point or two of the homeownership rates in Canada and in the European Union as a whole, where variable rates rule.