Does the US not have standard variable rate mortgages? They are the norm in the UK, and they very much can go up (or down) over time, depending on the interest rate. Of course many people have assumed that interest rates will be low forever.
Does the US not have standard variable rate mortgages?
They exist, but I have no idea how popular they are. Some older folks like myself remember the 80s, when variable rate mortgages were more popular due to higher interest rates at the time. I also remember a few people I knew who nearly lost their house because their variable rate mortgage went up considerably (all kept their houses, but they were pinching pennies until the coins screamed).
Thus I extrapolate that I'm not the only one that stays away from variable rate mortgages. That, and our current mortgage is at 2.5%.
It does, but it's generally discouraged and not common. Fixed rate mortgages are far more common and desired. We also have mortgage types that start at a fixed rate and then after some period of time become variable. Many of the variable rate mortgages also have caps on how much they can float per year.
The US does have variable rate mortgages, but in the current environment of VERY low interest rates, they are typically only used by investors that plan on selling quickly.
Most people would be getting a fixed rate these days.
