FuN & Interesting Facts About Mortgages
This month is a focus on all things modern: design, art, architecture, culture and lifestyle. Mortgages aren’t always thought of in that same ethos, so we wanted to do away with some of our boring jargon and share some FuN facts about the mortgage industry.
The concept of a mortgage is old, really old (older than this guy)
The first documented cases of mortgages can be found dating back to English law documents from 1190, though the word itself derives from Latin so it is likely that the concept is much older. Mortgages in the U.S. originally began on much shorter terms and for much less money. It was customary to borrow 50% or less of the value of the home and for only 5 years. The mortgages we are familiar with today were born with the FHA and came out of the Great Depression era with Roosevelt’s New Deal to promote economic growth.
Long-term fixed rate mortgages are primarily an American concept
While many home loans in the US are 15 and 30-year fixed rate mortgages, the rest of the world uses systems that are closer to adjustable rate mortgages. If fixed rates are available, they are typically for much shorter terms. In Canada for example, the longest fixed rate mortgage you can get is 10 years.
We are the largest locally owned and operated mortgage company in Boulder
We have been thrilled to be a part of the Boulder community for more than 30 years. At Premier Mortgage Group, we prefer to keep these ties to our community solidified by doing business face to face. Let us take care of financing your modern home the old-fashioned way!
A red door signifies a mortgage-free home
Painting your front door red in Scotland is a sign that you have fully paid off the mortgage. That’s a tradition that I think we can all agree is something to look forward to!
The Boulder Housing Market has been recession proof
Since the Federal Housing and Finance Authority (FHFA) started tracking appreciation values in 1979, there have been 5 national recessions. Boulder home prices have remained steady or even increased during all these periods.
You can get a negative interest rate mortgage in Denmark
Jyske Bank, one of the largest banks in Denmark, has just announced the first ever mortgage with a negative interest rate. The loan, a 10-year -0.5% mortgage, still requires a monthly payment, but the amount owed will actually decrease each month by slightly more than the borrower has paid.
While we don’t have negative interest rates in the U.S., they are currently at some of the lowest levels we have ever seen. Contact us today if you are looking for a new home, investment property or considering a refinance of your current loan!