We have been pre-approved for an

I have serious doubts that an Italian bank can disburse a loan in USD .  And , hewever , in Italy  you can’t use the USD  to pay the home to the italian seller .So  , you'll have to open in Italy a foreign / currency account, which will have a high cost of management, accept the exchange rate that offers the bank and pay its committees, to have euro to be use to pay for the house in Italy.I see no real advantage in this cumbersome procedure.  

I assume you mean the re-payments can be in USD or Euro, that being the case there will be an exchange charge? Regards the one off choice in 20 years, I'm pretty sure Italy is now like anywhere and you can change providers (if you can get one) when you want, perhaps with initial limits.

No one in Italy can make payments in USD, euro payments are allowed only within the Italian territory. . To have an account in foreign currency, it is necessary to prove that they must use the foreign currency in international trade. Put simply, you need to be a company.So , on another comunity , mrs. Cannoli , say , that the bank , is a  suiss bank , that accept payment in USD  . I hope that in the future it is not necessary refinancing this mortgage because I highly doubt that an Italian bank, agrees to make a subrogation, on a mortgage that has not been enrolled to the Italian land register.

Yeh.... and the expat forum gives some very good advice. Like I indicated there will be a charge and reading more of what has been said, there is a great risk ....

We have already secured a mortgage offer from a private swiss bank with offices in Italy willing to accept payment in dollars or euros. They will pay the italian seller in euros. We understand about the fees relating to the purchase. I have italian citizenship. I was merely speculating about wether it would be more financially advantageous to take the loan in dollars vs euros given currency value fluctuations. We are leaning toward dollars because our retirement income will be in dollars and there will be no exchange fees.

This is a really tough one!  Obviously you know the stuff that others are saying above, that the mortgage is a legal act constitiuted by a notary etc etc and if you are taking out the morgage in ITaly you need to add a fair bit to your costs and taxes at the point of purchase BUT  whether you should choose USD or Euro is a good questions.  if I knew i would be rich I suppose - I suspect the USD will fare better than the euro over the nxt 20 years - unless of course Trump wins, in which case invest in any currency other than USD:  The Euro has too many cracks to make you think it wont have at least one major hiccup in the coming years.  Howeever, the pessimists like me, tend to bleat on about there is a looming financial crisis that will make 2008 seem a blip.  With the levels of personal and institutional debt increasing ten fold in the last8 years it will happen at some point.  QE has been massive in the Us and EU so both are at risk of contagion.  I would, on balance, plump for USD over the Euro at teh moment - assuming you are paid in USD - but you must vote democrat!   

Think most has been covered here and the conclusion is, it's your gamble. Personnaly I would not be buying (bought) in Italy if I had to have a mortgage to do so. However, and if your deal allows this, I read recently some good advice on the expat forum you also posted on. If you can pay a set amount of $ per month, slightly higher than needed to cover the repayment based on the current exchange rate it should protect you to some extent on the rate fluctuations. Of course this may not work if the $ drops dramatically against the € (which I also doubt). Like I said it depends if the deal allows a fixed $ amount and one above the repayment amount if the exchange is in your favour.I would also find out how easy it is to get out of/ swap this mortgage in the event of needing to do so.

the bank name is ?  interest rate ?  pay off expenses ? 

Thank you to everyone for your input.  The bank is Popolare di Sondrio Succursale. The interest rate is a negative number + Libor.  Since we will be living on money coming from the U.S., and after considering all your comments, I think it will be best if we get the mortgage in USD. 

Hi , the  BPSo  is a  Italian Bank , not Swiss bank :) , The negative Libor on USD are bigger than euribor  , and subject to free bank bargaining  >  http://it.global-rates.com/tassi-di-interesse/libor/dollaro-americano/2016.aspxwith upward trendinstead the Euribor , which is under the control of the BCE due to quantitative easing, thanks to our Draghi, is in constant decline> http://www.euribor.it/tassi-storici-euribor/regarding the spread, ie the bank's earnings on the money loaned to you, it's called mortgage, I doubt that it is negative, the bank - the BPSO in particular, is not a charity - If money to buy negative, then it can not sell just the negative - Apart from the fact that in this way would go to a fast failure, the Basilea  III regulations, they are subjected to all European banks, will automatically nullify the loan agreement.I suggest you , to read the Foglio Informativo - that you can find at this address >  file:///O:/fi_bps_mutuo_ipotec_pf_casa.pdf At page 2 >  Parametro di indicizzazione per i mutui a tasso variabile > you read > Libor - London Interbank Offered Rate a 3 / 6 mesi a seconda della periodicità della rata (5);This mean that  the bank to be apply to mortgage the Libor interes = from 0,624 to 0,862 ( see libor link ) At page 3 > Commissione di intervento > you read > Per i soli mutui in valuta, sono previste anche commissioni di intervento pari allo 0,20% sull’importo erogato e su quello, di volta in volta, rimborsatoThis mean that you pay a bank fees for 0,20% on the  currency received and/or on the currency that you repay time to time . At page 3>  Estinzione/riduzione anticipata > indennizzo onnicomprensivo massimo 3,00% del capitale anticipatamente rimborsato.This mean that - if you buy as second home - you pay 3% on the money that you repay mortgage before natural mortgage deadline - in case of payoff  - in case of surroga -  it is always good to review the banks' conditions before signing any agreement - but certainly those who offered you this loan, as required by current regulations, will have explained to you, these laws, and you, you are already aware of all the negative specifications , the contract you are signing.Ugo , by Lifeinitaly.it ps>  I apologize in advance for any write error. The English language, which for my work are obliged to use every day, it's not my native language . 

And MORE at link >  file:///O:/fi_bps_confronto_mutui.pdftrasparency document , issued by BPSo , at date 16-03-2016 (date at bottom of page) - page 5Voice > Mutui in valuta tasso variabile ( = variable interest rate mortgages ) ,column 2 Trattasi di mutuo a tasso variabile espresso in valuta diversa dall'euro, il cui tasso è parametrato al Libor di riferimento della valuta stessa. last column to the right TAEG (Tasso Annuo Effettivo Globale): 3,67% Nel calcolo del TAEG sono comprese le seguenti voci Capitale: 100.000 euro Data erogazione: 01/01/2016 Durata: 10 anni Rimborso: Trimestrale Tasso ingresso variabile: 3,267% Spread: 4,00 punti Spese di istruttoria: 500,00 euro Spese incasso rata: 5,00 euro Spese di perizia: 244,00 euro Spese di assicurazione annua: 50,00 euro Rata trimestrale esempio euro 2.945,68 Imposta sostitutiva 250,00 euro so ... were is the Negative interest rate ? Ugo , by Lifeinitaly.it 

When buying a home in Italy is the price negotiable?  Do buyers expect to enter into negotiations?Also I plan on paying cash when I find the right house. Any pitfalls in doing that? I have not found many articles talking about real estate futures. So any of you know the forecast for real estate in Italy?Thanking you in advance. 

Linda , it's better that you open a new question , for this . Yet , yes , negotiation is standardly in italian home purchasing , and NOT , you can't pay cash , in Italy have a laws , according to which the greater amount that can be transferred in cash is 3000-euro. You can pay with a Bank transfert directly from your's  bank account ,  that yo have in your contry . or BETTER , via bank transfert  , from your's Italian bank account  , or via bank Draft , issued by a your's italian bank account  directly to seller's  name . More about buy in italy , here>  http://www.lifeinitaly.it/Inglese/Purchasing_Real_Estate_in_Italy.htmBuona Pasqua e buona casa in Italia    

normal price is paid in a percentage between 5 and 10 percent, to purchse agreement signing, for the remaining total, at the time of the signing of the buying public, in the presence of the Notary  

It would depend where you are thinking of buying, but usually a cash purhaxe does give you more leverage in the offer. Any owner would prefer someone to buy the home who will not be dependent on a mortgage being granted, which makes the sale unsure and adds to the length of time between compromesso and atto.How negotiable a property would be depends where you want to buy.   In the centre of Venice or Florence where the market is driven by foreign 2nd home buyers, there will be virtually no discount.  Go to an out of the way place with a sluggish market and you can probably reduce the ticket price by up to 20%

Modicasa ,  buongiorno, tu sai , come si fa a spostare questa conversazione su un topic diverso ? 

Surroga mortgage to NON-ITALIANS  - 1,75% fixed interest rate -duration 10-20-30 yearsmortgage amount minimum 100.000-euro - maximum 50% of the property commercial value more info at > http://www.lifeinitaly.it/Inglese/italian_mortgage_refinance.htm