advice: lock in for 25 year term

There’s like, this article in the Vancouver Sun, and it’s like, from last week but it’s pretty interesting.

A home you like, can afford trumps market

For example, for someone contemplating borrowing $400,000 with a rate of three per cent, the interest cost over 25 years with a 25-year amortization would be just under $170,000. If the rate increases to six per cent, the cost would be $373,000, an increase of more than $200,000.

That’s an important point to consider whether you’re holding off on buying or signing up for a mortgage. If you go to renew in 5 or 10 years will you be able to afford the payments based on higher interest rates? The solution is obvious. Lock in to a 3 percent mortgage rate for the entire 25 year term of your mortgage.

The only problem with this advice is that it’s impossible. Try offering to lock in to your mortgage for 25 years at 3% and see how your bank reacts.

As long as we’re offering nice but impossible advice, I’d like to suggest you only buy a 8 bedroom house so that you have room to expand and pay no more than $400 so that you have lots of money left over for travel and hobbies.

Also I recommend the end to war and famine.

hat-tip to supersogs for the link!

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soroushbaba
soroushbaba
10 years ago

no one can doubt that

bums up2
bums up2
10 years ago

Anyone maintaining a fake accent on an anonymous blog has a screw loose anyway, and dropping it now is a mark of desperation. Didn’t take much for the worm to turn.

Pretty sure it was to make fun of Satv/thums up 2/kite towards moon/etc. Man I'm almost starting to miss that guy's demented haiku style of writing.

TinyLion
TinyLion
10 years ago

Just a couple of clarifications here…

I agree tht LEED (no 's') certification isn't exactly what it is being sold as, but some buildings actually are tested for performance. It's just not something the CaGBC demands.

LEED is not just energy performance; it is also about materials, air quality, location and so on.

With regard to energy performance, LEED actually has little relevance anymore with the adoption of the new energy guidelines in our province.

I'm not questioning your criticism, but I am all about accuracy! 🙂

Like anything in this world, we can't legislate integrity.

VHB
VHB
10 years ago

@SuperSmartBull: "Right now, it’s just gibberish coming out."

THAT is the funniest thing I have read today. Did someone hack SSB's account?

Tony Danza
Tony Danza
10 years ago

@SuperSmartBull: Ummm no, I'm nowhere near as prolific a poster as you are, in fact you may have the most posts on this blog after VHB.

Anyway I made a resolution not to converse with the criminally insane so we'll have to end it here.

RepoMan
RepoMan
10 years ago

@SuperSmartBull:

Why so angry? Just because the RE commission cheques have stopped and you will loose the BMW, don't take it out on us. It's just a car.

SuperSmartBull
SuperSmartBull
10 years ago

@giggling: That's not a serious question is it? Are you that delusional that you think this blog is that influential? If anything, you should be paying some bears NOT to post on here, since they discredit the whole site.

SuperSmartBull
SuperSmartBull
10 years ago

@Tony Danza: Right back at ya buddy.

Tony Danza
Tony Danza
10 years ago

@SuperSmartBull: Great. Hope you're able to fulfill your lifelong dreams spending your days posting this garbage. I can't imagine how empty your life must be.

giggling
giggling
10 years ago

@SuperSmartBull:

SSB, since you seem to be opening up, all of the sudden, tell me – are you getting paid for posting here???

SuperSmartBull
SuperSmartBull
10 years ago

@Tony Danza: Hey, the accent got a few laughs, a little parody. This site needed a little humour to tone down the ridiculous bear hubris and vitriol a bit.

Tony Danza
Tony Danza
10 years ago

@SuperSmartBull: Did you forget your ESL bullshit accent or did you just kick your meth habit?

SuperSmartBull
SuperSmartBull
10 years ago

@zz.letron: LOL, that's right, I need to use a fake accent to hide my identity. Otherwise someone will figure out who I am. Seriously, you guys are deluded.

zz.letron
zz.letron
10 years ago

@betamax:

The irony of SSB! The blog is anonymous and he/she wants to be more anonymous by blogging with a fake accent. LOL. epic loser.

SuperSmartBull
SuperSmartBull
10 years ago

@fixie guy:

Someone claimed TARP ’caused’ the American bubble to burst?

You did, but that was yesterday, maybe you forgot or sobered up.

Tony Danza
Tony Danza
10 years ago

@SuperSmartBull: Are you for real?

SuperSmartBull
SuperSmartBull
10 years ago

@fixie guy: So nothing huh? No coherent thought or argument? I hope for your sake you are just trolling.

fixie guy
fixie guy
10 years ago

Someone claimed TARP 'caused' the American bubble to burst? This just keeps better. Keep typing.

SuperSmartBull
SuperSmartBull
10 years ago

@fixie guy:

Of course, the solution had no relation to the cause.

You're trolling right? The bubble began to burst in 2006 and TARP was signed into law in 2008. So Marty McFly, forgive anyone who has a grasp of dates to fail to understand how TARP in 2008 caused the crash in 2006.

SuperSmartBull
SuperSmartBull
10 years ago

@fixie guy: For god's sake, if you have a point to make about TARP, just make it. Right now, it's just gibberish coming out.

fixie guy
fixie guy
10 years ago

"No comment on TARP because it’s not relevant to the discussion of what popped the bubble…. "

Of course, the solution had no relation to the cause. Just unbelievable. Thanks again for illustrating the thought processes driving this market.

SuperSmartBull
SuperSmartBull
10 years ago

Strange. I rent a 2 bedroom “luxury” suite just over 1yr old. $1300/mth all in except cable and internet.

This doesn't pass a sniff test. No way this is true unless you're talking about Maple Ridge or the owner is asking you to take care of a few 'plants' for him.

SuperSmartBull
SuperSmartBull
10 years ago

@fixie guy: No comment on TARP because it's not relevant to the discussion of what popped the bubble, it was a response to the bubble bursting. Try and keep up. Mortgage rates were creeping up steadily in 2005 and 2006 and finally slowed prices in 2006. You can argue that's not true, but the facts are there. Then came the second wave of sub-primes and all those other fancy ones that were resetting at much higher rates. This, among other things, caused the violent nature of the crash. Now, given that, explain to me how we have the same scenario in Vancouver with rates that are staying low for the foreseeable future and no crazy sub-primes that need re-financing at much higher rates? The typical bear answer is, "Well, it's a bubble and they all just pop and crash violently,… Read more »

BoB
BoB
10 years ago

Intolerant bears these days! Wow you're sure convinced you're finally right after all these years of being wrong! Anyway… Devore Says: September 9th, 2010 at 10:04 pm @“A-Sharp” Accountant: Some guy finds a rental listing on the internet where asking rent went up, and concludes rents are going up? That’s funny, how did he manage to ignore the mountain of listings with rents down? Or the hundreds of renters asking for rent reductions and getting them? He got voted down because he be trollin. Absolute BS – I've been watching a certain type of unit for a few YEARS now – 2 bed, 2 bath, newer building located in downtown Vancouver. I can say with certainty they sell for $600 (and up) a square foot and rent seems to have moved up from about $2.20 square foot to about $2.50… Read more »

fixie guy
fixie guy
10 years ago

@ SSB No, that was the reply you merit. Daily and relentless clueless abuse entitles you to worse but I wasn't in the mood. Also noticed you had no comment on TARP. It's not surprising facts are of no interest to you. You didn't even bother Googling American mortgage rates or would have discovered your scenario is idiocy. Called out on it you cry civility? Hypocritical victimization putz, and apparently none too bright.

betamax Says Go back to RET, ETB.

You caught the tribalism/decorum tact too? My vote's 'Austin', but since they're probably sock puppets of each other it's splitting hairs.