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A comment on Middle class homebuyers taking $7k mortgages planning to later refinance down. Parent comment

Re:Middle class homebuyers taking $7k mortgages planning to ... by throwawaybbq1 on Friday July 21, 2023 @11:01PM (#36822765)
US mortgages are unique I believe. Canada does 5 year fixed and you refinance at the current rate.

I believe the US mortgages work because of Fannie Mae/Mac and a market in mortgage backed securities ( MBOs? I thought they caused the 2008 crisis but I think they are still a thing with better risk management, I dunno?).

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Re:Middle class homebuyers taking $7k mortgages planning to ... by pessimizer on Friday July 21, 2023 @11:37PM (#36822980)
It was auction-rate mortgage backed securities that triggered everything. If you see those start showing up again, know we're heading for an awful place.
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Re:Middle class homebuyers taking $7k mortgages planning to ... by sandydan on Friday July 21, 2023 @11:30PM (#36822941)
It’s not, my primary option when buying in France was 10-20 year fixed

I assume there are a good deal more countries with that sort of market

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