Google Giggler trader_4 wrote:
And our rates are "all in". None of the bull**** extra fees and
"points" that are tacked on to your mortgage costs (what the hell
are points anyways?).
You don't even know what points are,
I know that they are a way for your banks to bull**** you on the
effective mortgage rate that you end up paying above and beyond the
advertised rate or the rate that you negotiate with them.
The claim that the same thing doesn't exist in Canada, is
obviously BS.
He
http://www.canadamortgage.com/calculators/buydown.cgi
In Canada, it's called "buying down".
It's a term that is unheard of by residential purchasers (ie - the
typical home owner).
So stop bull****ing and read this;
------------------
http://www.canadamortgage.com/articl...TOKEN=86657438
Interest Rate Buy Downs
Developer Buy Downs
Many developers "buy down" the interest rate on the arranged financing
for their newly constructed housing units. They offer lower rates as an
inducement to purchasers, particularly when market interest rates are
high. The developer buys down the interest rate by paying an amount to
the purchasers mortgage lender. Essentially they are paying part of the
borrowers/purchasers interest for them in advance.
-------------------
Individual home owners do not negotiate any sort of "buy downs" with
banks when they negotiate their mortgage.
My first and only mortgage was for 5.95% back in 1999. My choices were
weekly (4-times-a-month), bi-weekly (twice a month) and monthly mortgage
payments (made via direct withdrawl from my bank account - which at the
time was an account at a different bank - I had no accounts with the
bank that I got the mortgage from). That was a 7-year term (I don't
know if it was amortized over 7 years or 15 years). I could make once
or twice-yearly balloon payments of $20k without penalty. The mortgage
was for $150k (I paid 20% down, so I didn't need mortgage insurance). I
paid the mortgage off in 4 years anyways after a few balloon payments.
I think there was something like $236 a week coming out of my account
while I was paying the mortgage.
And no, there was no such thing as paying extra for "buy downs".
If you can afford to throw extra money at the bank for a buy-down, you
can just as easily throw extra money into the downpayment and end up
with a smaller mortgage (and hence lower mortgage payments) so the
concept of a "buy down" doesn't really make any sense.
In the USA it's called points.
With either, buy paying some cash upfront, you lower the interest
rate for the duration of the loan.
Why don't you just take that extra cash and make a bigger downpayment?
I'm sure it would lower any sort of mortgage insurance costs that you're
forced to pay, and as I explained above it will lower your mortgage
amount and hence automatically mean lower mortgage payments (even if the
mortgage rate doesn't change).
What is a Credit Score?
I didn't say that there were private outfits that keep track of your
credit worthiness here in Canada.
I for one have never had to pay any attention to my credit report.
Apparently (and I've just looked this up, before reading the exact same
stuff you just posted) we seem to have the same "credit score" system as
in the US, with numbers that range from 300 to 900, where 650 and higher
means you're more likely to have your loan or mortgage granted.
In Canada, while you can ask for a free credit report by mail from
either of the two credit reporting agencies, you have to pay about $25
to get your actual credit score.
What a buffoooooon!
I guess I just have enough money to buy the things I need (cars, homes,
etc) without needing to know about that ****.
But still, our mortgage rates are lower that what they ordinarily should
be vs the US when you take into account the current federal bank rates.