So what exactly are your american residential mortgage rates these days?

Here in Canada, the typical home mortgage is between 1.99% and 2.99%.

Your US rates are confusing, because unlike here in Canada (where we do
have a single advertised rate) you have a bunch of other fees and
"points" tacked on which makes it less clear what your actual "all-in"
rate is, and also makes it hard to compare mortgages from bank to bank.

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think). That's the entire
rate - no extra junk thrown in on top. If you can pay 20% down, then no
mortgage insurance required (by law). Minimum down payment is 5% (by
law). Mortgage insurance will cost you from 3.3% of the mortgage amount
(if your downpayment is the minimum 5%) to 1.25% (if the downpayment is
just under 20%). Which means on a $200k house, with downpayment of 5%
($10k) the total insurance cost (regardless of mortgage term) is about
$6k, and that falls to under $3k with a downpayment of 20% ($40k).

===========================================

Half of Americans can’t afford their house
June 4, 2014

As the housing market slowly recovers, a majority of homeowners and
renters are finding it hard to meet rising rents and mortgage payments,
new research finds.

Over half of Americans (52%) have had to make at least one major
sacrifice in order to cover their rent or mortgage over the last three
years, according to the “How Housing Matters Survey,” which was
commissioned by the nonprofit John D. and Catherine T. MacArthur
Foundation and carried out by Hart Research Associates. These sacrifices
include getting a second job, deferring saving for retirement, cutting
back on health care, running up credit card debt, or even moving to a
less safe neighborhood or one with worse schools.

“Affordability issues are real and a major hurdle,” says Lawrence Yun,
chief economist at the National Association of Realtors, an industry
group. Home prices have increased 20% over the past two years while
wages have barely gone up, he says. “Only by adding more new supply, via
housing starts, can home prices be tamed,” Yun adds. In fact,
construction of housing units has averaged around 1.5 million a year for
the past five decades, he says, but it’s likely to be less than 1
million in 2014.

What’s more, at least 15% of American homeowners (or residents of 78
counties across the country) were living in housing markets where the
monthly mortgage payment on a median-priced home requires more than 30%
of the monthly median household income — long considered the maximum for
rent/mortgage repayments. Housing costs above that threshold are
“unaffordable by historic standards,” says Daren Blomquist, vice
president at real estate data firm RealtyTrac. In New York
county/Manhattan, mortgage payments represent 77% of the median income
and in San Francisco County represents 70%.

-----------
Also see: Why the price of a new home is rising
http://www.marke****ch.com/story/hom...ces-2014-06-03
-----------

Although mortgage rates are still quite low, down payments, poor credit
and tighter lending standards remain three of the biggest hurdles for
buying a home, especially among young people, Blomquist says. “The slow
jobs recovery for young adults has made it harder for them to save and
to get a mortgage.” Some 84% of young people are delaying major life
decisions due to the poor economy, according to a 2013 survey by
Generation Opportunity, a nonprofit think tank based in Arlington, Va.

Some people also appear to be cooling on one facet of the American
dream. About 43% of respondents in the “How Housing Matters Survey” say
owning a home is no longer “an excellent long-term investment and one of
the best ways for people to build wealth and assets,” and over half say
buying a home has become less appealing. Although 70% of renters aspire
to own a home, some 58% believe that “renters can be just as successful
as owners at achieving the American dream.”

-----------
Also see: Why your rent is so damn high
http://www.marke****ch.com/story/mor...ent-2013-12-10
-----------

But they’re still suffering the aftershocks of the property bust,
experts say. In the years after the recession of 2008, more than 7.5
million homeowners lost their home to foreclosure or short sale and
about 9 million more homeowners are still underwater and owe more than
their property is worth, Blomquist says. “If one looks at the last seven
years as a predictor of housing market behavior in the future, it
certainly should give one pause about whether buying a home is a good
investment or not,” he adds.

That’s not necessarily a bad thing, says Stuart Gabriel, director of
UCLA’s Richard S. Ziman Center for Real Estate. “From a policy
perspective, we overshot in prescribing homeownership too often and to
those who would have benefited more from other housing solutions,” he
says. Homeownership rates hit 64.8% in April, the lowest since 64.7% in
the second quarter of 1995, according to the Census Bureau. “It’s wise
to approach homeownership with more skepticism and more trepidation,” he
says.

The good news: Rising prices have lifted millions of homeowners out of
negative equity. Since the lowest point in the housing market crash,
rising prices have led to an additional $4 trillion in housing equity,
going to existing homeowners, smart investors and those who can afford
to buy, Yun says. Home prices, including distressed sales, increased
10.5% in April 2014 year-over-year, according to the latest survey from
mortgage-data firm CoreLogic, representing the 26th consecutive month of
annual increases in home prices.

http://www.marke****ch.com/story/ove...ity-2014-06-03

Your US rates are confusing, because unlike here in Canada (where we do
have a single advertised rate) you have a bunch of other fees and
"points" tacked on which makes it less clear what your actual "all-in"
rate is, and also makes it hard to compare mortgages from bank to bank.

There is supposed to be an Annual Percentage Rate that includes all
the interest and points. They can't practically advertise that
because interest rates vary with amount of down payment and credit
report.

Don't mortgage rates vary with "good credit" vs. "bad credit" in
Canada?

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think). That's the entire

You have *THREE YEAR* mortgages? On a $200k house with $10k down,
that means payments of $5,277.00 *just for the principal*. Very
few people are going to be able to afford that. (And if they can,
do they really need a mortgage at all?) Or, if it has a big payment
at the end, you're placing yourself between a rock and a hard place
if you're forced to refinance after 3 years not knowing if you can
(at any interest rate, and you'll be in big trouble if you are now
"upside-down" at the end of 3 years).

In the USA, it's more common to have 15-year or 30-year terms for
fixed-rate mortgages.

In article ,
(Gordon Burditt) wrote:



Don't mortgage rates vary with "good credit" vs. "bad credit" in
Canada?

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think). That's the entire

You have *THREE YEAR* mortgages? On a $200k house with $10k down,
that means payments of $5,277.00 *just for the principal*. Very
few people are going to be able to afford that. (And if they can,
do they really need a mortgage at all?) Or, if it has a big payment
at the end, you're placing yourself between a rock and a hard place
if you're forced to refinance after 3 years not knowing if you can
(at any interest rate, and you'll be in big trouble if you are now
"upside-down" at the end of 3 years).
Sounds like maybe a 3-year ARM (and nothing bad ever happens there).
More likely HG has nary a clue about what he is talking about.


--
³Statistics are like bikinis. What they reveal is suggestive,
but what they conceal is vital.²
‹ Aaron Levenstein

On 6/4/2014 3:17 PM, Kurt Ullman wrote:
In article ,
(Gordon Burditt) wrote:



Don't mortgage rates vary with "good credit" vs. "bad credit" in
Canada?

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think). That's the entire

You have *THREE YEAR* mortgages? On a $200k house with $10k down,
that means payments of $5,277.00 *just for the principal*. Very
few people are going to be able to afford that. (And if they can,
do they really need a mortgage at all?) Or, if it has a big payment
at the end, you're placing yourself between a rock and a hard place
if you're forced to refinance after 3 years not knowing if you can
(at any interest rate, and you'll be in big trouble if you are now
"upside-down" at the end of 3 years).
Sounds like maybe a 3-year ARM (and nothing bad ever happens there).
More likely HG has nary a clue about what he is talking about.


Nah, it's that the Canadian mortgage market differs substantially from
the US market in a few ways. For starters, the mortgage is tied to the
borrower, not the property, so the loan is portable. If the mortgage
holder wants to buy a different house, the mortgaged is carried over
to the new property. Canadian mortgages are five-year mortgages that
are amortized over 25 years, after which the borrower can pay off the
loan or roll over the mortgage for the remaining balance. That of
course exposes the borrower to the risk of the interest rates having
gone up in the interim. Conversely, the prepayment penalties are very
steep, to discourage borrowers from taking advantage of a decline in
rates. And Canadian homeowners can't deduct their mortgage interest.
The Canadian system also requires banks to retain their loans, not
sell them off to a third party. So their system puts more financial
responsibility on the borrower, but also makes the originating lender
responsible for the loan if it goes bad. Which is a major reason why
their housing/mortgage market has remained stable while we went
through a bubble and a crash.

Longer term mortgages provide payment stability to the home buyers. On
the other hand, in the US the average length of home ownership is only
seven years, so most of the time buyers aren't in it for the full 30
years anyway.

Don't mortgage rates vary with "good credit" vs. "bad credit" in
Canada?

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think). That's the entire

You have *THREE YEAR* mortgages? On a $200k house with $10k down,
that means payments of $5,277.00 *just for the principal*. Very
few people are going to be able to afford that. (And if they can,
do they really need a mortgage at all?) Or, if it has a big payment
at the end, you're placing yourself between a rock and a hard place
if you're forced to refinance after 3 years not knowing if you can
(at any interest rate, and you'll be in big trouble if you are now
"upside-down" at the end of 3 years).


Sounds like maybe a 3-year ARM (and nothing bad ever happens there).

A "3-year ARM" that guarantees renewability for 25-30 years but
could up the interest rate every 3 years is a risk, but not an
extreme risk. But that doesn't sound like a 3-year mortgage to me.

A "3-year ARM" that has a big balloon payment at the end, is *NOT*
renewable, and requires you to qualify (not "re-qualify" - you're
starting over from scratch) every 3 years seems to me to be an
insane risk. Get sick or lose your job at the wrong time, instant
homelessness.

More likely HG has nary a clue about what he is talking about.

Gordon Burditt wrote:
Your US rates are confusing, because unlike here in Canada (where we do
have a single advertised rate) you have a bunch of other fees and
"points" tacked on which makes it less clear what your actual "all-in"
rate is, and also makes it hard to compare mortgages from bank to bank.

There is supposed to be an Annual Percentage Rate that includes all
the interest and points. They can't practically advertise that
because interest rates vary with amount of down payment and credit
report.

Don't mortgage rates vary with "good credit" vs. "bad credit" in
Canada?

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think). That's the entire

You have *THREE YEAR* mortgages? On a $200k house with $10k down,
that means payments of $5,277.00 *just for the principal*. Very
few people are going to be able to afford that. (And if they can,
do they really need a mortgage at all?) Or, if it has a big payment
at the end, you're placing yourself between a rock and a hard place
if you're forced to refinance after 3 years not knowing if you can
(at any interest rate, and you'll be in big trouble if you are now
"upside-down" at the end of 3 years).

In the USA, it's more common to have 15-year or 30-year terms for
fixed-rate mortgages.


Hmmm,
$200K house or $200K mortgage? Where the hell is 200K house? No mortgage
here. I just have LOC which I don't use. Just in case for the
unexpected, I arranged it long ago.

"HomeGuy" Home@Guy.com wrote in message

So what exactly are your american residential mortgage rates these days?

Here in Canada, the typical home mortgage is between 1.99% and 2.99%.

That sounds really good. Trouble is, you have to go to Canada to get it.

--

dadiOH
____________________________

Winters getting colder? Tired of the rat race?
Taxes out of hand? Maybe just ready for a change?
Check it out... http://www.floridaloghouse.net

On Wed, 4 Jun 2014 13:00:03 -0400, "dadiOH"
wrote:

Here in Canada, the typical home mortgage is between 1.99% and 2.99%.

That sounds really good. Trouble is, you have to go to Canada to get it.

LMAO. Smack him again dadiOH!!!

Under Jimmy Carter rates were up into 20%. Mine is 3.5% and I don't
have to move to canada. My mortgage payment is less than renting

Oren wrote:
On Wed, 4 Jun 2014 13:00:03 -0400, "dadiOH"
wrote:

Here in Canada, the typical home mortgage is between 1.99% and 2.99%.

That sounds really good. Trouble is, you have to go to Canada to get it.

LMAO. Smack him again dadiOH!!!

Under Jimmy Carter rates were up into 20%. Mine is 3.5% and I don't
have to move to canada. My mortgage payment is less than renting

Hi,
Same happened here. Then many home owners used to reun away leaving the
house key at the bank. Also houses were sold for one dollar to get out
of crushing interest rate. Then I had fixed rate so did not bother me.

On Wed, 4 Jun 2014 13:00:03 -0400, "dadiOH" wrote
in

"HomeGuy" Home@Guy.com wrote in message

So what exactly are your american residential mortgage rates these days?

Here in Canada, the typical home mortgage is between 1.99% and 2.99%.

That sounds really good. Trouble is, you have to go to Canada to get it.

And most people would rather pay twice that rate to be able to live
in the U.S.
--
Web based forums are like subscribing to 10 different newspapers
and having to visit 10 different news stands to pickup each one.
Email list-server groups and USENET are like having all of those
newspapers delivered to your door every morning.

On 6/4/2014 10:27 AM, CRNG wrote:
On Wed, 4 Jun 2014 13:00:03 -0400, "dadiOH" wrote
in

"HomeGuy" Home@Guy.com wrote in message

So what exactly are your american residential mortgage rates these days?

Here in Canada, the typical home mortgage is between 1.99% and 2.99%.

That sounds really good. Trouble is, you have to go to Canada to get it.

And most people would rather pay twice that rate to be able to live
in the U.S.

In the U.S. the mortgage lending business is collapsing because such a
high percentage of homeowners refinanced when rates were extremely low
and are out of the refi market, probably forever. I.e. I refinanced at
2.625%/2.625%. No points, no fees, they even paid for the appraisal. So
2.99% is not an abnormally low rate, it's only about 0.5% less than the
present rate that someone with good credit can get in the U.S. if they
shop around for a loan. If they just walk into their bank and apply the
rate will be higher and there are people like that.

The other problem for mortgage companies in the U.S. is that so many
houses are being sold to cash buyers so there isn't any loan. This is
also a problem for non-cash buyers because sellers will accept a cash
offer if the offer is the same amount as an offer where the buyer is
getting a loan.

"HomeGuy" Home@Guy.com wrote in message
...

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think).
--
Please provide a picture of the hunting shack you live in at 1.99
for 3 years....LOL!!

On 6/4/2014 2:03 PM, BurfordTJustice wrote:

"HomeGuy" Home@Guy.com wrote in message
...

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think).
--
Please provide a picture of the hunting shack you live in at 1.99
for 3 years....LOL!!


Probably a balloon mortgage where all outstanding is then due and you
are forced to refinance.

"Frank" wrote in message
...
On 6/4/2014 2:03 PM, BurfordTJustice wrote:

"HomeGuy" Home@Guy.com wrote in message
...

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think).
--
Please provide a picture of the hunting shack you live in at 1.99
for 3 years....LOL!!


Probably a balloon mortgage where all outstanding is then due and you
are forced to refinance.

http://business.financialpost.com/20...e-rate-canada/

says:

Investors Group rolls out 1.99% variable rate mortgage
If you thought mortgage rates could not go any lower, you were wrong.

Investors Group is rocking the mortgage world with what appears to be the
deepest discount in Canadian history on a floating rate loan, offering a
deal that takes an effective mortgage rate down to 1.99%.

The company is now offering 101 basis points or 1.01 percentage points off
its prime rate of 3% for a variable rate mortgage. Consumers can get the
deal for a 36-month term which is shorter than the length offered by some of
the major banks on the deep discounted five-year fixed rate mortgage which
has dropped to around 3% - a controversial level that once drew the wrath of
the department of finance.

"We haven't seen a rate like this from a lender," said Rob McLister, founder
of www.ratespy.com., referring to the steep discount.

The offer from Investors Group is not available from brokers and is coming
from the company's own sources, designed to make a major splash in the
marketplace.

--

Bobby G.

On 6/4/2014 4:54 PM, Robert Green wrote:
"Frank" wrote in message
...
On 6/4/2014 2:03 PM, BurfordTJustice wrote:

"HomeGuy" Home@Guy.com wrote in message
...

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think).
--
Please provide a picture of the hunting shack you live in at 1.99
for 3 years....LOL!!


Probably a balloon mortgage where all outstanding is then due and you
are forced to refinance.

http://business.financialpost.com/20...e-rate-canada/

says:

Investors Group rolls out 1.99% variable rate mortgage
If you thought mortgage rates could not go any lower, you were wrong.

Investors Group is rocking the mortgage world with what appears to be the
deepest discount in Canadian history on a floating rate loan, offering a
deal that takes an effective mortgage rate down to 1.99%.

The company is now offering 101 basis points or 1.01 percentage points off
its prime rate of 3% for a variable rate mortgage. Consumers can get the
deal for a 36-month term which is shorter than the length offered by some of
the major banks on the deep discounted five-year fixed rate mortgage which
has dropped to around 3% - a controversial level that once drew the wrath of
the department of finance.

"We haven't seen a rate like this from a lender," said Rob McLister, founder
of www.ratespy.com., referring to the steep discount.

The offer from Investors Group is not available from brokers and is coming
from the company's own sources, designed to make a major splash in the
marketplace.

--

Bobby G.


I don't know details in Canada but do know in the US that to refinance,
you pay a lot of refinance charges not related to the mortgage
percentage. These costs can be considerable and may be a major source
of profits to the mortgage holder.

Frank wrote:
On 6/4/2014 4:54 PM, Robert Green wrote:
"Frank" wrote in message
...
On 6/4/2014 2:03 PM, BurfordTJustice wrote:

"HomeGuy" Home@Guy.com wrote in message
...

But yes, just recently some financial instututions here in Canada began
offering 1.99% mortgages (3 year fixed term I think).
--
Please provide a picture of the hunting shack you live in at 1.99
for 3 years....LOL!!


Probably a balloon mortgage where all outstanding is then due and you
are forced to refinance.

http://business.financialpost.com/20...e-rate-canada/


says:

Investors Group rolls out 1.99% variable rate mortgage
If you thought mortgage rates could not go any lower, you were wrong.

Investors Group is rocking the mortgage world with what appears to be the
deepest discount in Canadian history on a floating rate loan, offering a
deal that takes an effective mortgage rate down to 1.99%.

The company is now offering 101 basis points or 1.01 percentage points
off
its prime rate of 3% for a variable rate mortgage. Consumers can get the
deal for a 36-month term which is shorter than the length offered by
some of
the major banks on the deep discounted five-year fixed rate mortgage
which
has dropped to around 3% - a controversial level that once drew the
wrath of
the department of finance.

"We haven't seen a rate like this from a lender," said Rob McLister,
founder
of www.ratespy.com., referring to the steep discount.

The offer from Investors Group is not available from brokers and is
coming
from the company's own sources, designed to make a major splash in the
marketplace.

--

Bobby G.


I don't know details in Canada but do know in the US that to refinance,
you pay a lot of refinance charges not related to the mortgage
percentage. These costs can be considerable and may be a major source
of profits to the mortgage holder.

Hi,
In U.S. still your mortgage intewreste payment is tax deductible?
Never up here. Refinancing has no fees or charges unless we switch lender.