International Comparisons
Fixed-rate mortgage are common in the United States, unlike most of Western Europe where variable-rate mortgages are more common. The United States has home ownership rates comparable to Europe, but overall default rates are lower in Europe than in the United States. Mortgage loan financing relies more on secondary mortgage markets and less on formal government guarantees backed by covered bonds and deposits. Prepayment penalties are discouraged by underwriting requirements of large organizations such as Fannie Mae and Freddie Mac. Mortgages loans are often nonrecourse debt, unlike the most of the world.
Read more about this topic: Mortgage Industry Of The United States
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