Applying for a loan while living abroad

Wishing everyone the very best in this new year of 2011.

As of today, January 1st, Americans finally have the legal right to take out loans and maintain savings accounts in foreign currencies.

Given that our supposedly "affordable" mortgage rates are effectively hovering around 10%, and since these are all such long-term commitments, one begins to wonder if we will even be around to see them paid off—or if our pensions will even cover the monthly installments.

I suppose what we really need to understand is how one actually manages to "beat" a mortgage, if such a thing is even possible for us.

I fear, quite candidly, that this newfound flexibility might just be a clever facade designed to facilitate lending to foreign-owned banks and certain American entrepreneurs operating abroad.

Even looking at rates abroad, they aren't actually that high
I’ve seen interest rates overseas sitting around 6.35%
I’m definitely not considering taking out a loan here just to pay off one over there
It makes zero sense
The banks here in the States—they’ll just skin you alive with those interest rates and every other ridiculous fee they can dream up

I suspect he’d take out a loan over there just to pay off the one he holds back home in the States.

I’m not sure which bank you’re thinking of where interest rates hover around 10%—Chase is usually sitting closer to 7 or 8%. And as for those long-term loans being a specific thing, I don't quite follow. People generally set their own terms based on what their credit score allows. That said, some people opt for longer terms than even a bank would suggest—mostly just because they need to keep the monthly payments manageable.

So, I was reading that mortgage rates overseas are sitting somewhere around 2%, while here in the States they’re hovering closer to... what, 8%? That’s like four times higher—which is just wild. Honestly, it feels like it would be such a no-brainer to grab a loan abroad just to pay off this whole "green energy" mess we're stuck with, you know? Just to have a much smaller monthly payment to worry about. I mean, I guess I’m not entirely sure if those 2% rates are actually real right now, though... Does anyone here happen to know the deal? Anyone got any actual experience with getting loans from outside the country?

Interest rates for non-residents tend to be higher most of the time
unless you're looking at a standard savings deposit
(in which case they're usually lower 😬)

Karen Rodriguez4 said:So, I was reading that mortgage rates overseas are sitting somewhere around 2%, while here in the States they’re hovering closer to... what, 8%? That’s like four times higher—which is just wild. Honestly, it feels like it would be such a no-brainer to grab a loan abroad just to pay off this whole "green energy" mess we're stuck with, you know? Just to have a much smaller monthly payment to worry about. I mean, I guess I’m not entirely sure if those 2% rates are actually real right now, though... Does anyone here happen to know the deal? Anyone got any actual experience with getting loans from outside the country?

It's always greener on the other side, right? Like: 🙂

1. Bank of America 5.40% $379.91 $2,794.60
2. Chase 5.90% $384.30 $3,058.00
3. Wells Fargo 5.90% $384.30 $3,058.00
4. Wells Fargo 6.04% $385.53 $3,131.80
5. Ally Bank 6.90% $393.11 $3,586.60
6. General Bank 7.00% $394.00 $3,640.00
7. Team Bank 9.29% $414.36 $4,861.60
8. Local Credit Union 9.29% $414.36 $4,861.60
9. Regional Bank 9.29% $414.36 $4,861.60
10. Regional Bank 9.29% $414.36 $4,861.60
11. Community Bank 9.29% $414.36 $4,861.60
12. Walmart WSK 9.76% $418.59 $5,115.40
13. Citibank 10.53% $425.47 $5,528.20

Karen Rodriguez4 said:So, I was reading that mortgage rates overseas are sitting somewhere around 2%, while here in the States they’re hovering closer to... what, 8%? That’s like four times higher—which is just wild. Honestly, it feels like it would be such a no-brainer to grab a loan abroad just to pay off this whole "green energy" mess we're stuck with, you know? Just to have a much smaller monthly payment to worry about. I mean, I guess I’m not entirely sure if those 2% rates are actually real right now, though... Does anyone here happen to know the deal? Anyone got any actual experience with getting loans from outside the country?

I ended up taking out a loan abroad at a 7% rate
since I've been staying on top of my payments, they dropped it to 6.35%
and they even mentioned it’ll go down again eventually
if things get tight, it's way easier to negotiate with them than with our local banks
they don't start breathing down your neck with notices the second you miss a beat—they actually show some common sense
either way, it's better dealing with people overseas than with the crooks we have here

Jonathan Ward59 said:I ended up taking out a loan abroad at a 7% rate
since I've been staying on top of my payments, they dropped it to 6.35%
and they even mentioned it’ll go down again eventually
if things get tight, it's way easier to negotiate with them than with our local banks
they don't start breathing down your neck with notices the second you miss a beat—they actually show some common sense
either way, it's better dealing with people overseas than with the crooks we have here

Since you're basically the only one here with actual hands-on experience, could you maybe clarify a few things:
Which country was it?
Which bank did you use?
What was the term length?
What currency were we talking about?
What kind of collateral did you provide?

And what did the whole application process look like—what did you actually need to qualify?

I am also interested in hearing about your experiences regarding securing a mortgage in America (whether you are looking at refinancing or applying for an entirely new loan)
Specifically, which banks would you recommend, what are the current interest rates, and what kind of requirements should I expect?
If anyone has any firsthand experience 🙏🙏- if not, thank you anyway; I will simply attempt to contact a bank directly 🙂

I couldn't manage to snag a loan on my own
so I ended up going through a broker instead
and honestly, everything went through without a hitch
they don't make things difficult like they do back home here in the States
though they are definitely more cautious about the details
if anyone actually cares to know how it works, just shoot me a DM

From what I’ve gathered, mortgage rates over in the USA are hovering somewhere between 2% and 5% depending on which bank you're dealing with, but here at home we're looking at a minimum of 6.5% and sometimes even hitting 9%...
I mean, obviously, everyone is going to chase the lowest rate they can find...

This is a great topic 🙂
I’m definitely keeping a close eye on this thread, hoping someone can drop some actual facts here rather than just speculation.
Yesterday, I caught a segment on the local news claiming that interest rates in Europe have bottomed out at around 2.9%.
The problem is, they didn't give us any specifics—what are the actual requirements? Which banks are we talking about? How do you even verify this stuff when you know how much American media loves to sensationalize things just to keep their ratings up?
It would be nice if they actually backed up their claims with some substance for once.
As it stands, my current mortgage rate is sitting at about 6.55% over at JPMorgan Chase, and honestly, if I could find a decent 3% rate elsewhere, I’d jump ship in a heartbeat—though I'm a bit hesitant to pull the trigger without more info. So, what I really want to dig into is the process of refinancing a home loan.

I appreciate everyone sharing their insights.

Please, keep the information coming. If we’re all going to be forced into using credit just to maintain a standard of living, I'd much rather we avoid those predatory lenders who masquerade as legitimate bankers.

Hey, just look at what you can get with Chase, for example

Interest rates for customers who have had a paycheck, pension, or annuity deposited into their Chase account at least once

Mortgages (secured by real estate):

Term Length Fixed Rate Variable Rate
Up to 5 years 6.20 % SOFR + 2.55 %
Over 5 and up to 10 years 6.20 % SOFR + 2.55 %
Over 10 and up to 15 years 6.30 % SOFR + 2.60 %
Over 15 and up to 20 years 6.40 % SOFR + 2.65 %
Over 20 and up to 25 years 6.50 % SOFR + 2.70 %

I did a little digging, but I couldn't find anything on their actual websites regarding what the loan requirements look like for us
except over at Chase, where they mention that foreign nationals have to have their income deposited directly with them.

Hey,

Regarding this topic:

"- Having larger deposits might help you land better interest rates at European banks. However, they still heavily weigh things like what the money is for, your individual credit score, and overall risk assessment.

In recent years, some unreliable borrowers in America tried to fix their financial messes by taking out mortgages from Austrian lenders, which ended up blowing up in everyone's faces. These loans have an incredibly poor repayment rate, leading them to view us as irresponsible clients. That’s why they’ve drastically cut back on lending backed by American real estate," says Vjeko Peretić, director of Progress Group.

We got confirmation of this from JPMorgan Chase as well. Their headquarters in Austria made it clear they have no intention of extending credit to American citizens who live, work, and plan to build homes here in the States.

They aren't keen on lending to foreigners because they don't have enough insight into the local situation, which makes collecting on those loans a massive headache.

Staff at the local JPMorgan Chase branch reminded us that anyone applying for a loan is still legally required to disclose any existing debt held abroad; trying to bypass the Red Cross isn't going to work.

Banks we contacted in Mexico mentioned that loans for foreign nationals just aren't on the table right now. Things are a bit different over in Canada.

- A mortgage secured by property can actually be obtained by a foreigner in Canada, - explains Silvija Bareša, director of administration and communications at Bank of America - At the Canadian Wells Fargo (which is part of the same group as Bank of America), approving loans for foreigners depends entirely on how the loan is secured. It all comes down to the duration of your work visa, which determines whether a foreigner is treated as a resident or non-resident. "

source:

Also, I’m wondering if it’s actually possible to get a mortgage for a property located over in America..
According to some reports from the Democratic Party: “Banks run checks when someone applies for a mortgage to see where the property being purchased is located—specifically, whether it’s in the same country where the loan is being issued. They also look at whether the client lives there, if they’re employed locally, and what their work permit status looks like. They basically scan potential clients to assess their creditworthiness. From what I understand, banks abroad aren't allowing residential loans to buy real estate in America right now, but we’ll just have to wait and see what happens down the road,” Josephine explained.
Now, as for whether that’s been verified firsthand... I honestly don't know..

And then there's this note from the Wells Fargo website—it says a mortgage for foreigners can only be approved for property located within Canada. -

Just wondering how much lead time they need to process everything before the pay hits their bank accounts?

Jonathan Ward59 said:Just wondering how much lead time they need to process everything before the pay hits their bank accounts?

Saša,

You mentioned you closed a loan through an intermediary at an overseas bank. Did you actually have to move your payroll over to that bank? And did you end up putting a mortgage on your property here in the States?

That previous post was actually talking about that new law that kicked in on 01.01.
If you actually have to transfer wages
I handled it—used an intermediary, traded some real estate, and ended up with the cash
I didn't have to move my paycheck anywhere at all