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A comment on Home Price to Income Ratio. Parent comment

Re:Home Price to Income Ratio by aidenn0 on Monday September 20, 2021 @10:20PM (#28601398)
The weird thing is that 5 year adjustable rates are higher then 30yr. fixed. That only makes sense if interest rates will go down over the next 5 years, which seems unlikely to me.
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Re:Home Price to Income Ratio by hapless on Tuesday September 21, 2021 @02:55AM (#28602625)
Fixed-rate mortgages are government-subsidized by a range of mechanisms (Fannie, Freddie, FHA, etc)

Adjustable-rate mortgages are not.

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Re:Home Price to Income Ratio by JackFr on Tuesday September 21, 2021 @08:03AM (#28604169)
As a banker I am perfectly indifferent whether I make a fixed rate loan or a an adjustable rate loan to the borrower.

I look my cost of funds, tack on my spread and that is the price you pay.

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Re:Home Price to Income Ratio by elif on Tuesday September 21, 2021 @08:35AM (#28604414)
If you look at it from the bank's perspective it makes more sense. I got a 5 year and paid it off early. The bank got about 8% of my home value. My friend has a 30 year and the bank will get ~110% of his home value.
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Re:Home Price to Income Ratio by aidenn0 on Tuesday September 21, 2021 @10:20AM (#28605236)
This is for 30 year 5/1 ARMs the term is the same, but the rate is not locked
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