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RE: Negative Interest Rates: How One Couple Gets Paid Interest on Their Mortgage
I upvoted, but it's probably not the best idea to link to an article that one must be a subscriber to read. Makes it hard for people to contribute when they can't actually read what you're putting up. I'm sure it's a great article, but a short summary or something would be nice just to know what to talk about here.
Thank you brandonp I just found another link which shows the full article..:)
Thanks @stillsafe, that makes it much easier. As a mortgage broker myself, this is very interesting. I can't imagine a way this would happen in the US where interest rates, while low, are still in the 3-4% range on average. It's also important to note that these are coming on adjustable rate mortgages, so when the benchmark rate that the interest rate is based off goes up, these people will be paying higher rates than those who locked in a fixed low rate. It probably evens out in the long run so I wouldn't expect this to last too long. It's unsustainable so either interest rates go up, or the whole thing blows up.
Haven't I read something like this about the national debt? Isn't there some times where the debt is reduced through negative interest rates? I'm almost sure I read that sometime in the last few months German bondes were yielding negative nterest rates.