On Sunday, June 8, 2014 12:14:56 PM UTC-4, o m e H o m e G u y wrote:
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.
A few minutes ago, you freely admitted you didn't even know what
points we
" (what the hell are points anyways?). "
So, obviously you're in no position to comment.
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).
Here's a thread where residential Canadian purchasers are talking
about having done buy downs, ie points:
http://army.ca/forums/index.php?topic=82975.0
"I'm hoping others are willing to share their experiences regarding mortgage rate buy downs via the IRP program."
"I'm curious how many have taken advantage of this? We did for our first house via the IRP program and have really benefited from a low interest mortgage."
"I used it for my recent move and have an amazing fixed rate for my mortgage."
"We did this and since we bought a fixxer upper for dirt cheap, we combined the buy down with our interest free home loan for a combined mortgage rate of 0.845%"
So, first time buyers in Canada are using it, understand it, but it's
way beyond Homlessguy.
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.
Sure, the seller can pay the buy down/points. Makes perfect
sense that a developer would do that to offer mortgage rates that
are lower. So what? You claimed it didn't exist in Canada and
buydowns are a scam. Then those developers must be scammers.
How can that be allowed in the great country of Canada?
Individual home owners do not negotiate any sort of "buy downs" with
banks when they negotiate their mortgage.
See the thread example cited where buyers did exactly that.
My first and only mortgage was for 5.95% back in 1999.
If you've only had one mortgage, why should anyone even listen
to you?
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.
Yes it does. Go use one of the calculators and you'll see that if
you spend $3,000 on points, you'll lower the monthly payment significantly
more than if you put down $3,000 more as downpayment. Also, IDK how
it's treated in Canada, but you're bitching about the USA and here
points are tax deductible, a down payment is not. If you're in the
35% tax bracket, that $3,000 becomes $1,950 in actual dollars.
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?
Covered above.
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.
Of course not, you said the exact opposite:
"And credit scores? It's practically unheard of up here in Canada."
Which of course is totally wrong.
I for one have never had to pay any attention to my credit report.
It's obvious to everyone here that there is a whole lot that
you don't pay any attention to. Note that you not paying attention
and whether something exists or not, are two very different things.
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.
Well, there you go!
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.
IDK about the process in Canada, but what's stated above doesn't
make sense. A free credit report from either agency and having to
pay $25 to get your score does not compute.
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 ****.
That's fine, but then stop telling us how it works.