Negative Interest Rates: How One Couple Gets Paid Interest on Their Mortgage

in news •  8 years ago  (edited)


Are we now about to be paid interest on our loans when negative interest rates kick in?

Well This Couple in Denmark got paid $38 in interest for the quarter from his bank on his mortgage!

Read The Article Here http://www.huffingtonpost.ca/2016/04/18/negative-mortgage-rates_n_9722138.html

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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.

In Spain, banks are introducing conditions in their mortgage contracts to avoid this. They do not want to pay to their client if interests go bellow 0.

Well... if you look back at the very beginning of the creation money,
There is no way that all the debt and mortgage is paid.
Eventually it'll come crash down someday.

it's the new world order. Getting paid to borrow money.... Crazy. Crypto is starting to look better and better every day.

Negative interest rates are going to be a total disaster in the long run. Think about the other side of the investment, who into their right mind is going to lend someone money only to pay them for a negative return down the road. It is a guaranteed way to lose money. Negative rates will end very badly once interest rates turn the other way.

Haha it's way too funny how ridiculous life on earth is. It's so bad that it becomes funny. Really, truly hilarious if you think about it...

Exactly! A sad fact of life. Thank you for the vote! :)