goclimbarock007 t1_jea8gef wrote on March 30, 2023 at 3:30 PM

Reply to comment by DireFog in Is it normal to pay an extra 66% of a home loan back to your bank? by TenDogsInATrenchcoat

Maybe it's a European thing? His currency does use the Euro symbol.

AnEpicTaleOfNope t1_jeabg27 wrote on March 30, 2023 at 3:50 PM

I can chime in and say it's definitely not normal in the UK for one.

GoCardinal07 t1_jebcnph wrote on March 30, 2023 at 7:48 PM

Brexit? /j

DireFog t1_jea9j9b wrote on March 30, 2023 at 3:38 PM

Ah, that's possible, how silly of me to miss that Euro symbol. I think most of this sub defaults to assuming "American financial regulations" unless otherwise specified.

Just logically that seems like a horrible idea though. If you sell your house before the 38 years are up you are automatically deep underwater because you will instantly owe six figures on top of whatever is not paid off yet.

Right?

Seems crazy to me.

kcrab91 t1_jeadxvz wrote on March 30, 2023 at 4:06 PM

Has to be. 38 year mortgages aren’t a thing in the US. I believe Japan (not sure) have 50 and 100 year mortgages? That’s just wild.

BLolo99 t1_jeaj07f wrote on March 30, 2023 at 4:39 PM

Typical mortgage in Japan is 35 years. Those 50+ year mortgages are few and far between here - reserved for special situations.

And the banks here require a term life insurance plan paid up front to secure the mortgage too if you die before paying it off. Japan banks have zero risk tolerance.

[deleted] t1_jeamwc0 wrote on March 30, 2023 at 5:04 PM

[deleted]

BLolo99 t1_jeaoobn wrote on March 30, 2023 at 5:15 PM

It’s different because housing value tends to increase in the US, so the property can be sold off and the loan satisfied if needed. In Japan, outside of central Tokyo and a few other locations, housing value goes down not up over time.

Jmen4Ever t1_jeamdlf wrote on March 30, 2023 at 5:00 PM

My dad was offered a 50 year mortgage when he purchased his current condo. (Midwest US in the early 2000s.

Note he was 65 at the time.