How low can we go? 30 yr fixed at 3.75% with no fees...

[lnc]

I understand the difficulties for bank to lower the 30 yr mortgage below 3% but how does other countries like Japan and Taiwan offering super low fix mortgages around 1%?

 

[TCT]

I guess we got really lucky deciding to purchase a home around now. We were offered a 3.75% no cost 30yr before any of this happened with the fed or China. Anything around 3.5 or lower and we?d be very happy as we are buying a house soon no matter what, it?s just luck that rates lined up with us.

 

[sgip]

INC - an interesting question but it's nearly impossible to answer. Perhaps their loans might not be traded as ours are so the loans are then held by the banks directly rather than resold on the open market. Perhaps the average down payment needs to be 50 percent so risk is very low. Perhaps a Japanese bank buys a 3% USD mortgage security and uses the income to subsidize their 1% rate. Don't know if these are 30 year loan, 50 year loans, or loans with balloon payments in 5, 7, or 10 years for example. There are plenty of ways to make a non-fixed rate look like a fixed loan which then allows for weird rate options and products that are not available in the United States.

I'm not familiar with either countries banking models. If anyone does, now would be a good time to chime in, or start another thread on this.

 

[Kenkoko]

I understand the difficulties for bank to lower the 30 yr mortgage below 3% but how does other countries like Japan and Taiwan offering super low fix mortgages around 1%?

Home mortgages in Taiwan require personal guarantees. Hence the lending risk is lower = lower rates.

 

[zubs]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

 

[Kenkoko]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

Fairly easy. My parents pulled money out of their home in Taiwan at 1.25% and invested in rentals here in US.

 

[Kenkoko]

Forgot to mention, it's fairly easy for Taiwanese national, but almost impossible for a foreigner to get a mortgage. I've heard from an expat friend that it's hard even with a Taiwanese co-signee/guarantor.

 

[sgip]

Isn't there some loss or gain experienced when converting currencies? How is that factored in?

 

[irvinehomeowner]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

Fairly easy. My parents pulled money out of their home in Taiwan at 1.25% and invested in rentals here in US.

Dang. Can I borrow money from your parents at 1.75%?

 

[momopi]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

My uncle did this by borrowing against his properties in Taipei to purchase properties in Diamond Bar and Tustin.  Japan is also a popular investment location.  Taiwan's CTBC Bank bought out Tokyo Star Bank and offers low interest rate mortgages to Taiwanese investors:
https://www.tokyostarbank.co.jp/service/foreign_customers/en/index.html

Needless to say the loans are likely backed by the investor's assets in Taiwan, and since CTBC is based in Taiwan it makes it easy for them.

 

[usctrojancpa]

I think the bottom of the 30-year fixed will be around 3% unless something really bad happens in the world.  That being said, we are slowly becoming Japan 2.0 so I could see the 10-year bond go below 1% in the next few years.

 

[irvinehomeowner]

Why do people say we will become a Japan 2.0?

The scale/economy/influence/etc just do not compare.

 

[zubs]

When I hear japan 2.0, I think of low interest rates, and a stock market that stays below a certain value.
Back in 1989 the Nikkei hit 38,000 plus.  What is it today? 20,585


That peak is 1989

It's all down hill from here!!!WheeeeeeEEEEEEEEEEEEEEEEEEEEEEEEEEEEE


30 fucking years, and still can't get back to the highs of the past.

 

[Hugo Township]

Aging population won't help, especially if immigration is curbed.

 

[Mety]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

Fairly easy. My parents pulled money out of their home in Taiwan at 1.25% and invested in rentals here in US.

Dang. Can I borrow money from your parents at 1.75%?

Interesting. This actually could be a good business. Borrow from a foreign bank at 1.25% and lend at 2.25% for Americans since Americans can't get it themselves. This will make some people REAL rich REAL fast.

 

[Kenkoko]

Isn't there some loss or gain experienced when converting currencies? How is that factored in?

Many larger banks in Taiwan allow Taiwanese nationals to open US dollar denominated accounts. This is also a big tax evasion heaven. Most Taiwanese FCBs we know do not covert their TWD into USD then wire transfer. They open USD accounts at East West bank / Cathay bank in Taiwan / Hong Kong and just withdraw money here in USA.

 

[Kenkoko]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

Fairly easy. My parents pulled money out of their home in Taiwan at 1.25% and invested in rentals here in US.

Dang. Can I borrow money from your parents at 1.75%?

I recommend marrying a Taiwanese national. There are many lonely single rich Taiwanese here in Irvine.

 

[Kenkoko]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

Fairly easy. My parents pulled money out of their home in Taiwan at 1.25% and invested in rentals here in US.

Dang. Can I borrow money from your parents at 1.75%?

Interesting. This actually could be a good business. Borrow from a foreign bank at 1.25% and lend at 2.25% for Americans since Americans can't get it themselves. This will make some people REAL rich REAL fast.

This is actually common practice among my FCB circle. This is part of the reason why I keep saying if the economy in China tanks, you could see Chinese FCBs dump their Irvine RE investments.

 

[Kings]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

Fairly easy. My parents pulled money out of their home in Taiwan at 1.25% and invested in rentals here in US.

Dang. Can I borrow money from your parents at 1.75%?

I recommend marrying a Taiwanese national. There are many lonely single rich Taiwanese here in Irvine.

you should start a lending app that matches lonely single men who want to take out a low interest loan with lonely single rich taiwanese women

just remember me when you ipo

 

[Mety]

How hard is it to borrow the money from a low interest rate country, bring it to the USA and buy houses?
Like an all cash buy in America with a 1.5% interest in Taiwan.

Fairly easy. My parents pulled money out of their home in Taiwan at 1.25% and invested in rentals here in US.

Dang. Can I borrow money from your parents at 1.75%?

I recommend marrying a Taiwanese national. There are many lonely single rich Taiwanese here in Irvine.

Welcome back, YF!