What’s the mechanism for getting one of these very low interest rate loans? Isn’t that unprofitable for the bank? Or is this option unavailable when interest rates are high? 5 years ago I got a fixed mortgage at 2.5% but I couldn’t do that today, does that change if I’m rich enough?
I’m not rich enough to know the details. You can probably find answers online since it’s not like a secret. I think if the amounts are large enough, the rates can be lower so the bank still makes money. Also the collateral is worth more than a house, I think. Usually. More liquid.
I’m sure it gets more complicated than that. “Buy borrow die” is a common strategy
What’s the mechanism for getting one of these very low interest rate loans? Isn’t that unprofitable for the bank? Or is this option unavailable when interest rates are high? 5 years ago I got a fixed mortgage at 2.5% but I couldn’t do that today, does that change if I’m rich enough?
I’m not rich enough to know the details. You can probably find answers online since it’s not like a secret. I think if the amounts are large enough, the rates can be lower so the bank still makes money. Also the collateral is worth more than a house, I think. Usually. More liquid.