AllistonGT
Well-known member
I'm a few years too young to be a boomer. But this was me in my 20's. I'm having fun now.
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BOC Hits 5%
- Thread starter Mad Mike
- Start date
I’m not a boomer either by definition, but I’ve been to MachuPichu , I’m bare foot on a boat in the Caribbean every winter( except last yr , we went to the Med ) wife drives a Beemer, and my motorbike was built in Italy .
Wife retired early last month . We must have got it all wrong .
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Is it evil to buy from a desperation sale, paying below market value?
If your offer is accepted the others must have been more evil. As an auctioneer commented "It's worth what I get for it."
We could all get more for our stuff if we waited long enough but we could also miss other opportunities, like eating and sleeping inside.
AllistonGT
Well-known member
Yea, sounds like you messed it all up. You had your chance.
Round one of mortgage quotes from Scotia. They suck as expected. Renewal in Feb 2024. Fixed 2/3/4/5 year are 6.62/6.21/6.01/5.92%. Variable 5 year is 6.97%. I plan on going variable (and taking those fixed rates would be crazy). Now to shop around for a better rate.
We were with Scotia for years, this renewal we got a better rate through RMG, contacted Scotia to see if they could match and keep us as a customer. They basically said "Bye Bye"
I know a few people feeling the crunch on renewal rates. Some have gone secured LOC for the house and are basically just paying interest and plan to do that for a year, two, three... until rates come down. I guess if you have enough equity that is a solution to rent your house from the bank instead of a distressed sale.
The sanity and risk of the idea, well I cannot comment on that.
The sanity and risk of the idea, well I cannot comment on that.
Recently Scotia was rebalancing. They offered terrible rates as they needed to build their reserves back. If you took them, they knew they were last resort and were happy with your very profitable mortgage but anyone that had a choice moved out. That recently changed and Scotia has their numbers in order so they dropped rates to be competitive.
Huh? They renewed at a crap rate and are using LOC to pay mortgage and then they pay interest only on LOC? That's a risky game. Bank can kill access to HELOC at any time and then you are 30 days from the deck of cards collapsing.
No, they no longer have a "mortgage". They are not using the HELOC to pay the monthly mortgage payments.
The entire house is now just on a LOC. They then just pay the interest on the LOC each month to kick the can down the road with the idea to switch back to a mortgage in X years when rates come down. What is owed never goes down.
The exact numbers I cannot say but as I understand it. A house worth 1M, 600K owed, 16 years left on the original mortgage.
-They now have 600K on a LOC secured against the house and no mortgage in the classic sense.
-They were paying say $3.9K per month before at 2.9% (say 16 years left).
-Renewal at maybe 5.9% is around $4.8K (staying at 16 years left), can't do the extra grand.
-LOC at 7%, interest only is $3.5K per month.... but nothing gets paid down. It is sort of a DIY interest only mortgage.
-The other option could have been a new amortization period for the mortgage, extend back out to 25 years left if they will let you do it. Which gets back to around $3.9K per month.
As I said the sanity and risk is up to the individual...
Interesting, thanks. I guess I could do that. LOC interest rate is barely worse than the offered variable rate (but I think I can get at least a half point out of that variable rate, HELOC has no negotiation afaik). Still walking a scary tight-rope as I am pretty sure in the conditions for HELOC, the bank can call it at any time. If cashflow was that tight, I would probably grab the extra $1000 a month from heloc. At least that way the callable loan is at most an order of magnitude smaller.
In the things are always as they seem and msm deserves to die pile is this article.
No useful numbers given and math shows the implausibility of what they wrote (article says payments went from 2850 in Jan 2022 to 6200 now, redditors semi-agree on mortgage around 825-850 on a home purchased for ~1M but current monthly payment would still be thousands less unless they have added a ton of debt). She also appears to have maxed out her budget with a variable rate at the lowest in history.
Also a super-whiney and entitled person (I am not willing to sacrifice my lifestyle to pay my loan). Who wants to bet "needed" renovations on their new home, vehicles and vacations got heloc'd over the last year?
The kicker is she sold the house in February 2023 for 1.25 and article pretends it is for sale now. Even after expenses, she is up six figures in a year of ownership.
Giant turd of an article that would be embarrassingly bad for a blog. MSM whines about their struggle but crap like this deserves to be in a grave.
www.thestar.com
No useful numbers given and math shows the implausibility of what they wrote (article says payments went from 2850 in Jan 2022 to 6200 now, redditors semi-agree on mortgage around 825-850 on a home purchased for ~1M but current monthly payment would still be thousands less unless they have added a ton of debt). She also appears to have maxed out her budget with a variable rate at the lowest in history.
Also a super-whiney and entitled person (I am not willing to sacrifice my lifestyle to pay my loan). Who wants to bet "needed" renovations on their new home, vehicles and vacations got heloc'd over the last year?
The kicker is she sold the house in February 2023 for 1.25 and article pretends it is for sale now. Even after expenses, she is up six figures in a year of ownership.
Giant turd of an article that would be embarrassingly bad for a blog. MSM whines about their struggle but crap like this deserves to be in a grave.
Barrie-area woman watches mortgage payments go from $2,850 to $6,200, forced to sell
Cora Cook says her family is forced to sell their dream home less than two years after moving in, after their mortgage payments doubled.
www.thestar.com
Scotia just announced that they're going to be trying to be competitive on mortgages again they had a policy in place for a while to turn away any business except at high range
Sent from the future
I did that for years worked really well as the house went up was where I made the money. In my case it was a 70,000 LOC on $100,000 house that I sold for 200 5 years later
Sent from the future
My mortgage broker gal pal says it’s like nothing changed , daily calls about how to get 1.5m mortgage when you make $79k a year. And drive a nice financed car and still hold 40k in student debt ( and your not holding a medical degree)
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That’s not what my banker is saying
At a meeting yesterday with my guru he said to expect little improvement for a year and then some mortgage rate improvements. That information is as reliable as a bank pen.
We just moved from variable to fixed at the start of August - it was our regular renewal date. We have been on Prime -0.9 for almost 15 years, on two properties and decided against riding it out.
Around 6 months or so ago the variable rate rose enough that fixed rates were now cheaper. So we talked it over with our broker and decided to renew at with our current lender at 4.59% for 5yrs instead of shop around and get a slightly lower rate. Broker also advised us that for us to lose out on a fixed rate vs variable, this could likely start to be a possibility in around 2-3 years of the term and only if the BOC dropped rates steadily. Most likely we will be ahead or even until around the 3 or 4yr mark and then start to lose, but at worst we expect it to balance itself out over the long term.
In the things are always as they seem and msm deserves to die pile is this article.
No useful numbers given and math shows the implausibility of what they wrote (article says payments went from 2850 in Jan 2022 to 6200 now, redditors semi-agree on mortgage around 825-850 on a home purchased for ~1M but current monthly payment would still be thousands less unless they have added a ton of debt). She also appears to have maxed out her budget with a variable rate at the lowest in history.
Also a super-whiney and entitled person (I am not willing to sacrifice my lifestyle to pay my loan). Who wants to bet "needed" renovations on their new home, vehicles and vacations got heloc'd over the last year?
The kicker is she sold the house in February 2023 for 1.25 and article pretends it is for sale now. Even after expenses, she is up six figures in a year of ownership.
Giant turd of an article that would be embarrassingly bad for a blog. MSM whines about their struggle but crap like this deserves to be in a grave.
Barrie-area woman watches mortgage payments go from $2,850 to $6,200, forced to sell
Cora Cook says her family is forced to sell their dream home less than two years after moving in, after their mortgage payments doubled.
Some of her Facebook is open. If you scroll down and find the posts of selling the mattress and headboard, it will shed some light for her story.
There is also the ad from the agent for her house. She says it was a custom built house but from what I see, it's just a cookie cutter house in a suburb of a suburb.
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