Japanese Mortgage

Are you interested in making a contract regarding Japanese mortgage loan?
If you don't study adjustable-rate enough, I recommend to study the concrete merit and demerit on adjustable-rate mortgage.

★　The demerit of Adjustable-rate mortgage
　The rate of Adjustable-rate mortgage is adjusted to the key interest rate of Bank of Japan. (So far, the rate is 0.1%).
We have never seen such low rate in Japan.
So far, world economics is very bad. So this rate is reasonable.
But this rate will rise according to the recovery of economics.
If the key interest rate rise, your mortgage payment must rise.
What is difficult to plan the mortgage payment is the demerit of adujustable-rate mortgage.

★　The merit of Adujustable-rate mortgage
　Generally, the rate of adujustable-rate mortgage is lower than the rate of fixed-date mortgage.
For example, the lowest rate of adjustable-mortgage loan in Japan is the 1.075% by Sumitomo Trust Bank.
On the other hand, the lowest rate of 35 years fixed-mortgage loan is 2.520% by Sumitomo SBI net Bank.
It is the merit of the adujustable mortgage payment that mortgage payment is low so far.

★　Consideration Factor
　It is very importatn to consider the speed of payment and the speed of rising economics.
If the speed of payment is faster, the people who select the adjustable mortgage loan can win.
If the speed of rising economics is faster, the people who select the fixed amortgage loan can win.

In my condition, I decided to select the adjustable mortgage loan.
If we select reasonable answer, we need to know the Japanese economics and Family budget enough.

I will write my forcast regarding Japanese economics and Japanese key interest later.

Japanese mortgage webpage
http://mortgagefan.blogspot.com/2008/09/4000sbi-5590-5780-12.html