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question regarding mortgage?
- Thread starter rashidme
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I take nothing personally, ever. I could care less about you or your ego. You're responses to this thread have been epic, considering you are hosting a thread entitled "Sold are homes". Speak from knowledge, not from your heart. Do us all a favour.
It's a motorcycle forum, I think my sig line is appropriate. It's got nothing to do with my investing philosophy.
You on the other hand are doing an excellent job:
a) advertising your personal business on a motorcycle forum. Have you paid the site supporter fee to Paul, BTW?
b) calling potential customers cowards for pointing out that your "guarantee" is actually a non-zero risk.
Potential customers *love* that kind of sales technique. Definitely Salesperson of the Year material.
You on the other hand are doing an excellent job:
a) advertising your personal business on a motorcycle forum. Have you paid the site supporter fee to Paul, BTW?
b) calling potential customers cowards for pointing out that your "guarantee" is actually a non-zero risk.
Potential customers *love* that kind of sales technique. Definitely Salesperson of the Year material.
eljay
Well-known member
What do you do when the person paying 8% calls (or doesn't call) and says they don't got it? I've been alive long enough to know this has happened before. It hasn't happened here recently, but it's a very real possibility. People need to be aware of that. That's what Brian is saying.
johnp
Well-known member
Oh and I just noticed Red695's tagline
"Safely earn a guaranteed 8% interest yearly on your RRSP's? Contact Me *"
and let me say with certainty that it's total BS.
Sample Canadian govt. bonds yields are at:
http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/
Now these are totally safe, (so far as default risk anyway). Note how badly they suck and are nowhere near 8%. So if someone had a totally safe investment (i.e. as good as Canadian govt. bonds) they wouldn't have to pay 8%, now would they? The reason someone is paying 8% is because they have to i.e. it's just that much (or more) riskier than a sure thing.
Nobody is paying you a premium rate of return because they love you.
"Safely earn a guaranteed 8% interest yearly on your RRSP's? Contact Me *"
and let me say with certainty that it's total BS.
Sample Canadian govt. bonds yields are at:
http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/
Now these are totally safe, (so far as default risk anyway). Note how badly they suck and are nowhere near 8%. So if someone had a totally safe investment (i.e. as good as Canadian govt. bonds) they wouldn't have to pay 8%, now would they? The reason someone is paying 8% is because they have to i.e. it's just that much (or more) riskier than a sure thing.
Nobody is paying you a premium rate of return because they love you.
Modern Day Grifter...
No kidding... My thoughts exactly.
Pushing this back to topic, there are a lot of mortgage brokers and agents now that work semi independent of the big banks that have access to funding that doesnt have the same costs attached to it as big banks, so they have the ability to offer better rates of interest. They are legitimate and safe , they just dont have a brick and mortar building on every second corner to pay for.
For most Canadians a primary residence is the largest investment they may ever make, and historically free hold homes have been a sound and practical place to put your money. The faster you own it, the less interest you pay and the more equity you create.
Decent investment houses like an Edward Jones actually has a policy in place where they will not allow you to take a leveraged line of credit against the home to invest with them. Not so much with RBC or BMO, they will help you leverage yourself off a cliff if you let them.
For most Canadians a primary residence is the largest investment they may ever make, and historically free hold homes have been a sound and practical place to put your money. The faster you own it, the less interest you pay and the more equity you create.
Decent investment houses like an Edward Jones actually has a policy in place where they will not allow you to take a leveraged line of credit against the home to invest with them. Not so much with RBC or BMO, they will help you leverage yourself off a cliff if you let them.
I'm a fan of pay-your-mortgage off as soon as you can....the wife and I did it in 12 years (last payment was over 3 years ago) and could have done it way sooner but we wanted to live a little too
seeing rates this low always reminds me of the late 80s when interest rates were 17-19%!!!......when we bought in 1997 locked in at 5% I thought I was getting the deal of a lifetime....so we consciously chopped the sucker down at every opportunity.....when the savings passed that comfort threshold by a few grand....awesome...a quick call and we'd chop her down more.....the fact that we rode our mortgage to it's fruition at under 5% rates was something you'd have never convinced me would be possible
seeing rates continue at this puny % doesn't create comfort with me....it creates caution....it says pay this sucker off before they go back up.....cause they will
the wife and I became so dilligent at chopping the sucker down that we started surprising ourselves at just how much we were overpaying annually.....with salary increases and xmas bonuses over the years going right at the principle...the thing was plummeting
in the last few years we basically got used to chucking over $40k annually at the thing....more than doubling the payment......and then...we stopped paying....cause we killed the sucker
it may be a simpleton approach....but the mortgage experience has trained us how to sack away gobs of cash annually while still enjoying life and living a little along the way....and I've got a least 20 years of career left before I hang it up.....with no albatross on my back
seeing rates this low always reminds me of the late 80s when interest rates were 17-19%!!!......when we bought in 1997 locked in at 5% I thought I was getting the deal of a lifetime....so we consciously chopped the sucker down at every opportunity.....when the savings passed that comfort threshold by a few grand....awesome...a quick call and we'd chop her down more.....the fact that we rode our mortgage to it's fruition at under 5% rates was something you'd have never convinced me would be possible
seeing rates continue at this puny % doesn't create comfort with me....it creates caution....it says pay this sucker off before they go back up.....cause they will
the wife and I became so dilligent at chopping the sucker down that we started surprising ourselves at just how much we were overpaying annually.....with salary increases and xmas bonuses over the years going right at the principle...the thing was plummeting
in the last few years we basically got used to chucking over $40k annually at the thing....more than doubling the payment......and then...we stopped paying....cause we killed the sucker
it may be a simpleton approach....but the mortgage experience has trained us how to sack away gobs of cash annually while still enjoying life and living a little along the way....and I've got a least 20 years of career left before I hang it up.....with no albatross on my back
That is old school. You're supposed to carry a large debt to income ratio like every other Canadian and share in the misery. As an added bonus your partner is willing to pull in the same direction rather than pull into a mall parking lot every weekend. Enjoy.
I mentioned this a couple posts up. You and me both know people and or coworkers in Michigan that got destroyed in 2008 and 2009......houses bought at $500K became worth $160 K. A couple of good friends and coworkers from Pratt & Whitney went to work in San Diego and they felt some pain as well.
yup
it's not as dazzling and complicated....but you sleep way better
without the massive albatross on your back....you don't even think about "borrowing" to buy things....you plan...and you save....and then you buy
my credit card balance is 32 cents....funny thing, it says the minimum payment is also 32 cents....I felt like calling them and arguing that my minimum payment should actually be around 1/2 a cent based on their %s
Being fearful of investing makes one a coward? Thanks for clarifying that. And wow you are so easily offended. Strange for someone coming on a thread about mortgages and warning every one to stick to paying of their mortgages because they lack the intelligence to invest in anything else. Get over yourself. And what a bizarre response. You chastise me for advertising on a motorcycle forum and allude to telling on me and then advise me on how to snag customers. Make up your mind already. You want someone to kiss your *** and try to sell to you? To each their own but that's not what I do and I sleep soundly at night living an honest life.
And in your (mine) lesser moments take great delight in reminding the near and dear that "I don't owe nobody a stinkin' dime" lol, ok enough of this.......
That is absolutely old school and a simpletons approach.
I'd like to congratulate all the simpletons I know that paid out the house and are now, not wondering if Cuba in March is more fun than another payment at the bank.
And yet, sig gone... LOL!
Will there be a vote later? I know who I'm voting for. Am I allowed to say? What about lawn signs?
Red_Liner740
Well-known member
WOw, just WOW Red.....Did you SERIOUSLY just tell everyone who wants to pay off their mortgages instead of investing that they lack intelligence? Hooooly **** that is making my blood boil.
Its pieces of **** like you that we're in this ****ing mess to begin with! The "invest, its great, ZERO risk, why be a sucker and pay off your debt...." mentality that is so popular with mainstream society now-a-day is why we have the highest debt-to-income ration in history, why the economy is in the shitter, why everywhere i go i see "for lease" signs on business properties, why the US economy is on the bring of collapse. The shilling of the "you got debt? thats okay, take out MORE debt to get out of the previous debt"
For every one of your "stories" of success, there are a thousand people who have failed! Guess what, you, if you are as successful as you state, and i really doubt it as truly successful people never brag about it, are the exception to the rule. Just like that guy that wins the lotto doesnt mean YOU will, but the damn commercials sure make it seems so.
In the end, the ones who paid of the mortgage, when the tough times come will still have a roof over their heads, while the ones who leveraged themselves will be crying poor. I've seen it done before, on large scales and it will happen again.
Its pieces of **** like you that we're in this ****ing mess to begin with! The "invest, its great, ZERO risk, why be a sucker and pay off your debt...." mentality that is so popular with mainstream society now-a-day is why we have the highest debt-to-income ration in history, why the economy is in the shitter, why everywhere i go i see "for lease" signs on business properties, why the US economy is on the bring of collapse. The shilling of the "you got debt? thats okay, take out MORE debt to get out of the previous debt"
For every one of your "stories" of success, there are a thousand people who have failed! Guess what, you, if you are as successful as you state, and i really doubt it as truly successful people never brag about it, are the exception to the rule. Just like that guy that wins the lotto doesnt mean YOU will, but the damn commercials sure make it seems so.
In the end, the ones who paid of the mortgage, when the tough times come will still have a roof over their heads, while the ones who leveraged themselves will be crying poor. I've seen it done before, on large scales and it will happen again.
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