Post ASnAIXZ3mnVIK5n36u by BlueHenPatriot@noagendasocial.com
(DIR) More posts by BlueHenPatriot@noagendasocial.com
(DIR) Post #ASmpLtBjkPeJDfdWKm by Kennyben@noagendasocial.com
2023-02-18T00:03:09Z
1 likes, 1 repeats
Does Canada not have fixed rate mortgages!?WTF! I would never sign up for a variable interest rate loan.
(DIR) Post #ASmpVPgIJEeybITFsO by icedquinn@blob.cat
2023-02-18T00:04:50.683221Z
1 likes, 0 repeats
@Kennyben a lot of people fall for it because the sales team plays up how low the initial cost is.
(DIR) Post #ASmqHpJ2L7n9yUg4PI by greyknight33@noagendasocial.com
2023-02-18T00:13:37Z
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@icedquinn @Kennyben yup. wild ppl took it when fixed mortgages were going for less than 2% during the plandemic.down side is, when it comes time to renew and rates spike, you could get crushed.
(DIR) Post #ASmrqj0JrUfUWG7xLs by mh@noagendasocial.com
2023-02-18T00:31:08Z
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@Kennyben I can't speak for Canada but a buddy of mine in Sweden mentioned to me he was going in to the bank to do some paperwork regarding the rate and he said they can NOT lock it in, at least not permanently. They can get a fixed rate for a max of ~5 years at which point you have to renegotiate the rate with the bank. so I guess that is indeed a thing in some places at least
(DIR) Post #ASmx9iyqfpcticJo0m by Kennyben@noagendasocial.com
2023-02-18T01:30:36Z
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@mh I wonder if Canada is the same? Sounds like a nightmare to me.
(DIR) Post #ASmzU3iHV0iHiiOR7Y by mh@noagendasocial.com
2023-02-18T01:56:40Z
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@Kennyben yeah when he mentioned it to me I was somewhat shocked because he just bought the house not too long ago so I asked him why would you have taken a variable rate??! he said that isnt an option, can lock it in for 2 or 5 years only
(DIR) Post #ASn30hbF2NouYTMEC0 by ned@noagendasocial.com
2023-02-18T02:36:11Z
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@mh @Kennyben my five years ran out a few months ago. I had the opportunity to lock it in for another fixed rate period, but our repayments are now twice as much. Unfortunate, but entirely expected. If you don't plan for these things you are a moron.
(DIR) Post #ASn3Wdoqd3BY62x3IG by Kennyben@noagendasocial.com
2023-02-18T02:41:58Z
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@ned @mh wow! I had no idea you couldn’t get a fixed rate loan. That’s insane, I wonder why it’s set up like that?
(DIR) Post #ASn507AChosRSVYgPg by ned@noagendasocial.com
2023-02-18T02:58:29Z
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@Kennyben @mh because if you fix I low, and the rates go high, the bank will loose their ass. If you fix high, and the rates go low, you always have the option of going somewhere else. So a long term fixed rate is loose/loose from their perspective.
(DIR) Post #ASn5b7XaGadLLK8kLI by mh@noagendasocial.com
2023-02-18T03:05:11Z
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@ned @Kennyben fixed rate is pretty much the default AFAIK in US. When we bought our house 2.5 years ago they didn't even ASK if we wanted otherwise, and we're locked in at about 3% for another 18ish years 😅
(DIR) Post #ASnAIXZ3mnVIK5n36u by BlueHenPatriot@noagendasocial.com
2023-02-18T03:57:51Z
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@mh @Kennyben we have this in the United States as well, though it is typically used for commercial real estate rather than residential. The loan is amortized at 30 years and locked in for 5, at which point it is renegotiated and amortized at the new rate.
(DIR) Post #ASnAluYJOdua16RfGK by BlueHenPatriot@noagendasocial.com
2023-02-18T04:03:09Z
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@ned @Kennyben @mh exactly. This is how lenders mitigate interest rate risk and runoff caused by prepayments (refinancing). Though the bank’s losses with a low fixed rate in a rising rate environment would be considered an unrealized loss, since they did not project and plan based on the increase in income they are missing. Also keep in mind, the bank may not be making the money from the rising rates, but even though your payment stays low the value of the collateral continues to rise.
(DIR) Post #ASnVONa5umDI8RtpHU by carolen@noagendasocial.com
2023-02-18T07:54:12Z
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@Kennyben I don't know for certain how it is in the UK these days but when my parents bought their house, the rate was 'UK base rate + x%' so whenever the Bank of England changed the Base Rate, their payments would go up or downFixed rates were not common as they were sold as 'you could end up spending more than people on variable rates'Makes no sense to me either but it seems to be a culture thing
(DIR) Post #ASqVq60RR14jD4JqWe by Arthur_500@noagendasocial.com
2023-02-19T18:43:21Z
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@Kennyben I've never heard this story before, or before, or before...