Interesting discussion going on here.
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You guys know I am not from the U.S. Over here in europe the picture
is as fragmented and fragile as your U.S. vs. Canada view. In Germany
the prices for family homes are surging as everyone wants to invest the
dwindling euroes into something “safe”. In the southern europe holiday
resorts, though, the bubble has gone bust in 2009. (Much like California)
My question is: How do you american guys finance a home?
What percentage of down payment is required (normal), how long do
the loans run and what kind of interested do you have to pay ending up
at what typical monthly rate?
For some 2-3 years I am following the market over here and have been
outbid two times on a nice home. (the nicer ones often do not come to the
open market, me thinks…)
At the moment I am calculating with 3,5% Interest and 1,5% payment, which
means it would take up t0 25 years to pay for a 250.000 small semi attached
suburbian home, that I still have to come to accept, mentally.
This whole shit scares me crazy sometime at night as I want to provide my
kids a nice invironment despite all the economic desaster around us. (Which
for me is mostly on TV, I must admit. Business over here is still going strong.
(knocking on wood.)
What I have heard our british and spanish friends have come to only paying
the interest in their monthly payments waiting for their grandchildren to pay
their debt after it was devalued through inflation within 30-40 years.
Is there a logic to that?
mo-i