Denmark has the solution to America's broken housing market
www.businessinsider.com
In a cruel twist, millions of Americans are trapped in their homes by low mortgage rates. Denmark's housing market offers a tantalizing alternative.
  • @Fosheze@lemmy.worldEnglish
    4•11 months ago

    Wait, how do you get a home loan where you don’t pay on the principal? That’s not even a loan at that point; that’s just renting except you also have to pay for maintenance.

    • partial_accumen
      4•11 months ago

      We have these in the USA too. Its called an " interest-only mortgage".

      that’s just renting except you also have to pay for maintenance.

      Lots of things you can do here that you can’t do renting:

      • Since its you are the owner house you can make any changes you want to it
      • If the property appreciates in value because of market conditions, that’s YOUR money thats not the landlords money
      • You decide who lives in it. Landlord can’t tell you no
      • Pets if you want them
      • no security deposit
      • mortgage payment stays the same forever, this “rent” never goes up in price

      All of that said, I don’t recommend interest-only mortgages in the USA because a home is one of the most accessible investments a person can have with strong legal protections keeping others from taking it from you via legal means.