tag:blogger.com,1999:blog-32931256.post13044188028822637..comments2024-03-22T05:20:44.167-07:00Comments on The Disaffected Lib: An Issue We Can Still Fight an Election OnThe Mound of Soundhttp://www.blogger.com/profile/09023839743772372922noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-32931256.post-31595496287528397872008-09-25T14:35:00.000-07:002008-09-25T14:35:00.000-07:00Banks have no obligation to renew a mortgage at th...Banks have no obligation to renew a mortgage at the end of term. If housing values have collapsed, the lender may want to recoup what it can while it can. Don't confuse amortization with the term of a mortgage. The term (usually five years) is the limit of each party's contractual obligation. For example, if mortgage rates went sharply up - from 4% to say 20%, no lender would extend past the term at 4%. They'd either demand a new deal or tell the borrower to find another mortgage lender and pay them out.The Mound of Soundhttps://www.blogger.com/profile/09023839743772372922noreply@blogger.comtag:blogger.com,1999:blog-32931256.post-53491914547711155322008-09-25T12:46:00.000-07:002008-09-25T12:46:00.000-07:00To get a mortgage, a family has to pass the 30/40 ...To get a mortgage, a family has to pass the 30/40 qualification test. <BR/>Only 30% of total income can go towards housing, <BR/>and if your mortgage plus credit card and truck payments etc. total more than 40%...you don't qualify for a mortgage.<BR/>Plus a minimum of 5% down, and less than 20% down, the buyer has to contribute to an insurance fund where the less you put down, the more you pay for mtg insurance<BR/>(so if buyers walk on their mtg, banks can draw from the fund if the equity in the home is less than the re-sale price)<BR/><BR/>The thing about the 'bubble' is you only lose money if you sell.<BR/><BR/>If you bought during the price slide (I have 2 kids that did this year) don't think you can turn around in 2 years and sell for a profit, ain't gonna happen.<BR/><BR/>With interest rates so low, a monthly mortgage payment, with 5-20% down, is still less than the cost to rent an equal property.<BR/>Buying now is a good idea for young people, it is the start of their personal wealth.<BR/>Just expect to spend 5-10 years in the home.<BR/><BR/>As long as buyers keep making their payments, doesn't matter if the house value is less than the principle left on the books.<BR/>Banks, at renewal time, will renew you, as long as you made your payments, no worries.<BR/><BR/>Mortgage payments aren't the problem. Credit cards and personal debt is.<BR/>Pay down your credit cards.wilsonhttps://www.blogger.com/profile/03589410224972050999noreply@blogger.comtag:blogger.com,1999:blog-32931256.post-10258109296290092232008-09-25T12:21:00.000-07:002008-09-25T12:21:00.000-07:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32931256.post-83600127955914500702008-09-25T12:11:00.000-07:002008-09-25T12:11:00.000-07:00Sorry Wilson but it's apples and oranges. Those wh...Sorry Wilson but it's apples and oranges. Those who can't afford it don't retrofit their homes. You're wildly off topic. Address the housing bubble issue if you like. I'm worried about the new homeowners who have signed on to inflated prices and risk falling victim to housing deflation.The Mound of Soundhttps://www.blogger.com/profile/09023839743772372922noreply@blogger.comtag:blogger.com,1999:blog-32931256.post-60245292131512311252008-09-25T12:06:00.000-07:002008-09-25T12:06:00.000-07:00''Housing bubbles are economic cancer.''And Dion's...''Housing bubbles are economic cancer.''<BR/><BR/>And Dion's Green Mortgages are a cure?<BR/><BR/>Dion is encouraging Canadians to go into debt to retrofit their homes. <BR/>Doesn't that run contrary to your post and good advice to NOT over mortgage your house or increase personal debt in these times.?wilsonhttps://www.blogger.com/profile/03589410224972050999noreply@blogger.com