A conundrum
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I personally grew up quite impoverished and me and my wife did manage to get our home in medium COL area. We don't have exceptionally high paying jobs nor did we have any help from our families. We just made a lot of effort to build our credit. We're also not old at all under 30 to not dox myself too much.
A lot of people simply have some wrong assumptions about the amount needed to get a loan. We put down 3%, sure we didn't get the most competitive rate and our payment is higher, but it worked out to the cost of our then comparable rent. There's quite a few federal programs that ensure the opportunity for a low downpayment mortgage for first time homeowners.
But that was just slightly before interest rates went insane, kinda on the way up
In a previous life I was a mortgage loan officer at a broker. I bent over backwards helping folks get into those programs whenever possible. I was impressed with how little was needed when everything slotted in place in some cases. Glad it worked for you too!
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Actually i guess the bigger issue is that we're gonna be unemployed in 15 years due to a declining demand of human labor and then who pays back what?
Today you could afford the pay-back rate, but not in the future, and the banks are well aware of that.
wrote last edited by [email protected]There is no declining demand of human labour, and there is no indication that it will ever happen. The way the labour is performed is changing, just like it always does
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Even just renting an apartment is full of bullshit.
"The apartment is $1300 a month."
"Perfect, I make $2000 a month."
"No. You're gonna need to make $3900 a month before we will rent to you."
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And while we're ranting about this, can we throw PMI and whomever came up with it on the bonfire where they belong?
Your telling me that I need to pay for you to have insurance in case I default while your also charging me interest who's very purpose is to offset risk? Why am I paying to offset your risk FUCKING TWICE AND HOW IS THIS FUCKING LEGAL.
Shit infuriates me. I want all the bankers to get William Wallace on live TV, recorded and played back once a year during a mandatory viewing window so that we never, ever, forget.
Interest is not intended to offset risk?
Interest provides a return on capital.
If you have $1 youre not using you might let someone else use it if they incentivise you by giving you an interest in their need.
If you give $1 to 100 different people you might increase the rate for some of them to offset your additional risk, but thats not the purpose of Interest.
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They don't actually need regular payments for 10-30 years. They need you deposit that down payment cash ASAP so they can lease it to billionaires and crypto exchanges.
Idiocy.
The bank doesn't get the down payment. The person selling the house does.
You pay that person the down payment, and the bank pays them the rest.
Honestly there's loads of great reasons to hate banks but lots keep it real and avoid making up nonsense.
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The deposit is not to prove you can make the repayments.
Housing markets do, occasionally, go backwards in value.
If you have a loan for a house which is more than the value of the house you would have an incentive to just stop paying.
Thats why the bank needs a buffer, in the form of a deposit. Its not really nefarious.
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Interest is not intended to offset risk?
Interest provides a return on capital.
If you have $1 youre not using you might let someone else use it if they incentivise you by giving you an interest in their need.
If you give $1 to 100 different people you might increase the rate for some of them to offset your additional risk, but thats not the purpose of Interest.
Part of interest calculation is risk. That's why higher credit score leads to lower interest, it's less of a risk to the lender.
PMI is double dipping. They can pick one, either a flat across the board interest rate for all borrowers or PMI.
Didn't mean to imply it was entirely about risk.
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Idiocy.
The bank doesn't get the down payment. The person selling the house does.
You pay that person the down payment, and the bank pays them the rest.
Honestly there's loads of great reasons to hate banks but lots keep it real and avoid making up nonsense.
Banks typically ask for you to have cash in hand (deposited), or equivalent leverage, to qualify for loans in the first place.
The bank I used actively tried to get me to go with less down payment, and subsequently take out a larger loan.
But yes it is the height of idiocy to say, 'down payment deposit' when 'qualifying assets' is a more accurate term for the transactions function.
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Going to be wild when people just give up on society and just start eating the ruling and ownership class. I tried warning these assholes if they didn’t give something. Then they would doom their existence. And now you have more people radicalizing everyday because they are being put on the streets.
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Hey, I just did these things! Water heater i was ripped off, which cost me $2600, and the roof i actually thought was a good deal at 17k. Not fun but the roof made me happy. The water heater actually destroyed my basement by leaking out...
As long as you didn’t get a rental water heater, you did not get fucked.
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As long as you didn’t get a rental water heater, you did not get fucked.
I have no idea what that is, but I dont think I wanna know. I did want tankless on demand, but the service guy convinced me it's not worth it, and I regret my decision. Said I won't save much because the power draw is much higher than a water heater, so even though the heater is always keeping it warm, the on demand still takes more. I think I may have needed additional wiring for the electric and believe that's really the reason he swayed me away.
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The deposit is not to prove you can make the repayments.
Housing markets do, occasionally, go backwards in value.
If you have a loan for a house which is more than the value of the house you would have an incentive to just stop paying.
Thats why the bank needs a buffer, in the form of a deposit. Its not really nefarious.
If the loan is fixed at an amount or matched to inflation, you'd still have to pay or lose the house.
That's still a pretty bullshit excuse, because it's not like all that money you've already spent on paying the house will magically come back to you, you'd still be homeless if you lose the house, and the bank would still have a house available for the market, even if it's at a lower value than before.
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Even just renting an apartment is full of bullshit.
"The apartment is $1300 a month."
"Perfect, I make $2000 a month."
"No. You're gonna need to make $3900 a month before we will rent to you."
I live in the Toronto area and rent here is up to like $2600 for a 2 bedroom.
Why haven’t we burned shit down? Why do we take this??Im no leader but I’ll gladly build some gallows and die for my kid’s generation.
Im also a vegetarian, but I’m willing to roast and take a bite of the billionaire just to show my conviction. I think we should actually literally do it with one to prove a point -
I have no idea what that is, but I dont think I wanna know. I did want tankless on demand, but the service guy convinced me it's not worth it, and I regret my decision. Said I won't save much because the power draw is much higher than a water heater, so even though the heater is always keeping it warm, the on demand still takes more. I think I may have needed additional wiring for the electric and believe that's really the reason he swayed me away.
Sounds like it is not common where you are, consider yourself lucky. Where I live, all new houses are built with predatory rental water heaters. $50-100/month forever. You end up paying the purchase price many times over. Electric tankless heaters use an insane amount of electricity when they operate. Overall they are more efficient, but the wiring needed to supply it will greatly increase the price, often requiring a panel upgrade and possibly an upgrade in service to the house.
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As long as interest is lower than stock market return your mortgage should never go away
Sure, but when you refi to invest, it's not really "paying for somewhere to live" any more
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If the loan is fixed at an amount or matched to inflation, you'd still have to pay or lose the house.
That's still a pretty bullshit excuse, because it's not like all that money you've already spent on paying the house will magically come back to you, you'd still be homeless if you lose the house, and the bank would still have a house available for the market, even if it's at a lower value than before.
And if it gets so bad that the bank starts losing money... no worries, the government will simply bail them out like usual!
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This isn’t true in my experience at all. Either rent is cheap where you are or you’re looking at expensive houses or not for a 30 year period. The rate currently is around 6-9%. It would only be more expensive if the house is. No other hidden fees
wrote last edited by [email protected]Parents and brother went in on a house together so he could live near work. Rents out the main floor for $3750 a month (3 bedroom) and that covers the mortgage so he can afford to pay the utilities and lives in the basement.
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Is it ironic? We can't know nowadays.
Im responding to someone saying laws not protecting the weak from the strong is a failure, so i think we're pretty well i!to surrealist nonsense fantasy land.
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Sounds like it is not common where you are, consider yourself lucky. Where I live, all new houses are built with predatory rental water heaters. $50-100/month forever. You end up paying the purchase price many times over. Electric tankless heaters use an insane amount of electricity when they operate. Overall they are more efficient, but the wiring needed to supply it will greatly increase the price, often requiring a panel upgrade and possibly an upgrade in service to the house.
What happens if or when it breaks? Since it's rented, is that at the very least not on you? I would imagine any or all work on it shouldn't cost you anything since you're paying monthly for it? Not that I want that, but do you get anything for this rental fee?
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The deposit is not to prove you can make the repayments.
Housing markets do, occasionally, go backwards in value.
If you have a loan for a house which is more than the value of the house you would have an incentive to just stop paying.
Thats why the bank needs a buffer, in the form of a deposit. Its not really nefarious.
The alternative is some variety of private mortgage insurance. The insurer bets that housing prices will rise, so that you won't default. If you do default, they reimburse the lender on their losses associated with your default.
