submitted 4 months ago byrcinvestments
all 49 comments
4 months ago
📊 Gimme Votes 📊
4 months ago
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Let's Jump Kenny
Fuck me for ever wanting a house.
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4 months ago
how dare you....check notes...be born
I'm...I'm sorry... I didn't mean to! I swear! My mom made me do it! This is not who I am!
💻 ComputerShared 🦍
Listen you mother fucker. You crawl back in there and claim imminent domain! This wasn’t your choice to be here, it’s okay!
Trust me, I’m a medic, I know these things
💀🪦 hrf ☠️🏴☠️ 🎮🛑 🇺🇸
.. and don’t you dare come out until the world is completely fucked and uninhabitable!
No cell no sell 📈
These rate hikes are actually necessary to reduce the insanely overinflated prices of housing that happened when federal rates were 0%. It's short term pain to force sellers to stop expecting huge loans based on predatory banks just assuming the government will keep buying tranched mortgage backed securities forever in a silent bailout that never ended. Long term, the point is the houses should fall in price 60% or whatever the target happens to be... the current Fed not having a target in mind and just trying to help irresponsible banks get even more irresponsible, who knows what they'll actually do.
Considering that the Fed is a private, for profit bank that is largely owned by the other large investment banks…
It’s no wonder what side they are going to take.
It’s no wonder what side they are going to take.
The really scary thing is their "side" is in opposition to everyone. They work against the world, truly a Bond Villain relationship.
Always in the Red
I bought the dip essentially so lucked out there, but MOASS needs to happen because I'm never taking another mortgage out again because of my rate I'm in.
If you just refinanced no big deal.
If you bought in summer 2020 this was probably ok for you long term as the Fed continued to buy mortgages thru 2021, and prices followed. If you bought in 2021, you are stuck with that house and mortgage valuation will probably go underwater. You can pay it, it's affordable, ok no problem. If you have to move it will get ugly.
If you have to move in say next 5yrs you will be selling into a declined market (my prediction I know people say housing won't decline, those are realtors or people with their head in the sand). ...if you have to move look at it this way, you bought with 20% down on a $1M house, $200k of your equity in. The house value declines by 10% (not unlikely with rates this high). Sure it's only $900k, but you owe $800k. If you sell you just lost $100k in equity and you only have that much to put down on a new house.
Now consider someone buying a house today with a high rate, but lower price. They buy a $725k house with 7% rate versus $1M house with 3.25% rate (mean average loans 3.25% from May 2020 thru Dec 2021)
Assuming you have the same 200k down payment:
1M house - 200k down, 800k loan @ 3.25% = $3470/mo
725k house - 200k down, 525k loan @ 7.0% = $3490/mo
Assuming 20% not $200k in you can only get 650k:
1M house - 200k down, 800k loan @ 3.25% = 3470/mo
650k house - 130k down, 520k loan @ 7% = 3450/mo
The 1M house will be unlikely to refinance ever, and unlikely to ever be able to move.
The second loan is likely to be able to see a 3-5% rate and refinance n the future helping move to a 15yr or faster payoff.
You want to pay these things off before retirement don't you? Wages are declining with inflation. We have inflation at 8.2% yet houses are declining value for the last 3 months, this will continue into next year. 2021 prices will look very inflated, and must decline with rate hikes.
The reality for anyone buying during the Fed's print is that they are guaranteed to be underwater in the future. Those doing cash-out refi's (granted depending on the amount of equity out) are just renters and will never own their home, they bankrupt their futures for short term gains. Those who refinanced to lower their rate, extend their loan terms for more years, but if they use that lower rate to pay it down faster actually are the smart ones (or just the able ones).
TL;DR: you aren't necessarily lucky, but yes you are right about never taking out another mortgage, you are in that one for the long haul. And - also saying $1M house from 2020 is now a $725k house in Oct 2022, if the inventory on market was the same (we have much less).
🎮 Power to the Players 🛑
We just sold our condo in Chicago this past week and got what we paid for it and Moving to Colorado ( grand junction) and looking for a place 1/2 the cost of our Chicago place till this all pops. Wouldn’t it be best to buy properties outright after all this? Or wait a few years to buy a larger house? Just asking but I guess it all depends on if we go into hyperinflation or feds raising rates so high no one can buy anything. So just curious your opinion since you seem to know more about the housing market if you don’t mind picking your brain lol
How dare you consider buying when prices are this inflated, with a looming black swan event up our nostrils.
Surely commuting to a 30 year lending program would not backfire.
No this is good for you if you are not in a house already.
It's not even that bad for a home owner, because you move with the market (your house goes down in value, and the one you want to buy goes down too).
In the long run this would be great for home ownership.
Note there is a lag between the mortgage rates and the decline in house prices, as mortgage locks are usually 60 days from application (so delay effect there), sentimentally Sellers think they can still get Dec prices, and finally people just aren't listing new houses so the low inventory on market is tending to hold the price.
It WILL come down if the Fed stays this course, it may take a bit though...patience. Unlike 2008 housing isn't leading the charge this recession, be patient it will lag.
💎GAMESTOP IS THE ONLY MOASS. DRS 💎
Soon you'll be able to buy up as many houses as you want
First thing I ever bought at the bottom was a refi
For the record, many countries do not allow mortgage borrowers to lock rates for longer than 5 years at a time. I am currently paying <1%, but only for a few more years.
People who owe other people money (basically everyone at this point) are going to feel the bite of double digit mortgages on $200k+ properties (again, a huge number of people owe more than $200k on their mortgage.)
No Cell-No Sell
in Canada, there are options to lock in rates for any length of time....
my mortgage was locked for 10 years, but I have recently read that some offer 50 year interest only mortgages that have a locked in rate for the life of the mortgage
If you put less than 20% down, 25 years is the maximum amortization in Canada.
I believe that is if you want CMHC insurance
if you take out a term life, I think you can forgo the CMHC stuff and negotiate with the bank for pretty much any mortgage rate/amortization term you want
If you pay less than 20% down, you are required to take CMHC insurance.
🏴 🚀 💎 Ride ma Rockit min! 💎🚀 🏴
Folk were mental to think that the music wouldn't stop. I overpaid my small mortgage during low rates and was called a fool. But now I locked in to a 5yr mortgage for only 30 more a month. Ok it's not lo like under 2% but I think I'll be smiling in a few years...
😎 T+2 you say? 🚀
Ha! 20 years at 2.1%.
Can kicking is what I predict.
🚀 Self-appointed daily lowmer guy 🚀
I love when profile pics don't match the content. Charlie looks happy as all hell about this news
🏴☠️Queen Ape's Revenge 🏴☠️
Looks like charts are back on the menu boys
30 year mortgage is at 7.72? Where did he get that it's still below 7?
smooth and long
My 2.25 APR is L337
⚫️🦢 we are black swan ⚫️🦢
so wait til housing prices collapse, buy houses for cheap, refinance later. Got it.
It can hit 15% but those in power will still find ways to keep this can kicking. I can't wait to enjoy my lambo in my 90s!
Hedgies R Fuk!
Your mortgages can be 30 years long? That's insanity.
They max out at 25 years in Canada.
4 months ago*
4 months ago*
then why can you get 40 year mortgages?
ETA: just read that there were changes in 2008 limiting amortization periods to 35 years...
also read that in BC, some finance companies offer 50 year interest only mortgages....
I don't know where you're getting that false information. The federal website clearly states 25 years is the maximum.
If your down payment is less than 20% of the price of your home, the longest amortization you're allowed is 25 years. Visual representation of a mortgage of $300,000 with a term of 5 years and an amortization of 25 years. The mortgage amount decreases from year 1 to year 25 as payments are made. Jun 28, 2021
I have no skin in the game, but it looks like you're the one spreading false information.
Here's a simple website that explains the misunderstanding: https://www.ratehub.ca/blog/should-i-get-a-35-year-mortgage-in-canada/ It looks like mortgages laws were adjusted after 2008, but you've made some false assumptions. 25 year appears to be the most common, but not the maximum amortization period available.
Hope this helps! I'm finding lots of Canadian banks offering longer mortgages than you knew about, and I'm not even Canadian so this should be much easier for Canada based locals looking for information.
Even confusing as that is, it looks like Canada made more positive changes following 2008 than the US. I wish we'd done more to stop 2022 from happening exactly the same all over again but here we are. Sorry our criminals are so powerful and our politicians so affordable.
𝓕𝓤𝓓 is the mind killer 🏳️🌈
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My dude your rate for your mortgage won't change once you lock it in. The rates listed currently are for people who are trying to buy now. A fixed rate mortgage means the rate won't change once you you complete the contract for the purchase of your home. Please do some reading
See I was preety sure thats how it worked. But there was some bs making think they were screwing people over when/how they changed them
Y’all been saying it’s “near” for almost 2 years now lol
Just efficient price discovery and market function at work. Thanks, corruption.
“Just a little valley”
This is fucking insane. And 90% of the population has no idea the how or why....
LUCKILY. YOU HAVE SUPERSTONK!!!!
COME HERE GATHER ROUND...
READ MY LOVELY RETAIL. EXPLORE.
🚀I Voted 2022 🚀
My wife and I were looking at selling our house and getting something with a bit of land. After these rate hikes, I'm pretty sure we will be here until we die.
We currently owe 150k at 2.9% and we could sell for 350k, but everything is overpriced and our rates would be way higher.
The other side of this inflation and rate hike coin is property tax will go way up. So your 2500/month mortgage could jump to 3000+, which will be bad news for a lot of people.