Applying for a loan while living abroad
in Banking, Insurance & Loans ·
I’ll admit I’m a bit out of my depth here—I am certainly no expert—but from what I gather by reading sasa00's comments, this doesn't look like much of an opportunity. If mortgage rates here in the States are sitting at 6.3% while they're at 7% elsewhere, you aren't really gaining anything; you'd only be seeking a loan abroad because you've been turned away locally for other reasons. In that sense, it's more of a "last resort" than a strategic move.
So, here is my question: for those of us who aren't currently buried in debt but are looking to take out a mortgage, would it actually make financial sense to seek a loan abroad rather than staying domestic?
The rumor is that even if, say, interest rates in the USA are around 2.9% compared to our notorious 6.3%, the math doesn't work out for us. Apparently, US banks factor in the risk profile of your home country—and since our reputation isn't exactly stellar right now—they bump up the rate, bringing it back up to our usual 6-7% range. Is there any truth to this? Does anyone have concrete information on how these risk premiums actually function? Thanks!
So, here is my question: for those of us who aren't currently buried in debt but are looking to take out a mortgage, would it actually make financial sense to seek a loan abroad rather than staying domestic?
The rumor is that even if, say, interest rates in the USA are around 2.9% compared to our notorious 6.3%, the math doesn't work out for us. Apparently, US banks factor in the risk profile of your home country—and since our reputation isn't exactly stellar right now—they bump up the rate, bringing it back up to our usual 6-7% range. Is there any truth to this? Does anyone have concrete information on how these risk premiums actually function? Thanks!