So when’s the housing bubble bursting?

[doggface]

It starts the loan over which is why the payments drop “reamortize” yes you have to request it, they aren’t going to deny it, they want your money. It is not a wash, you save on the interest and you can keep making the same payment if you want or save the difference to make another recast payment down the
line. They will send you a whole break down of your new monthly payments,interest included and unlike refinancing, there is NO closing costs or costs period
Look up recast calculator and put the numbers in

You aren't wrong, I can see the additional flexibility with a recast, so I am glad I learned about it.

It's a wash if you pay the new lower monthly payment, the total balance, interest on that balance, and money saved on interest will be the same.

However, if you could make the lump sum payment and afford to pay extra on the principle the same amount the recast would lower your payment by, then you would save just as much in interest, but it would be paid off faster.

 

[A to Dah K]

You aren't wrong, I can see the additional flexibility with a recast, so I am glad I learned about it.

It's a wash if you pay the new lower monthly payment, the total balance, interest on that balance, and money saved on interest will be the same.

However, if you could make the lump sum payment and afford to pay extra on the principle the same amount the recast would lower your payment by, then you would save just as much in interest, but it would be paid off faster.

Still don't get what you mean by its a wash with the interest. The monthly interest will be lower regardless of if you pay more than the new payment or not

 

[praetor]

 

[DC_Dude]

300 F WOW!!!!

 

[doggface]

Still don't get what you mean by its a wash with the interest. The monthly interest will be lower regardless of if you pay more than the new payment or not

Here is some quotes regarding principal only payments from mortgage sites.

A principal payment on a loan reduces the amount of interest owed and, in turn, reduces the total amount paid over the life of the loan. Therefore, principal payments play a significant role in the amount an individual must pay over the lifetime of a loan.

• Save on interest: Borrowers can save money on interest by paying more than they owe every month.
• Shorten your loan term: Paying down your balance shortens your loan term and pays off your mortgage early.
• Supports your financial goals: Paying off your mortgage earlier allows you to use that money for other financial goals.

If I have 20 years left with a 100K balance, then I owe 100K and the interest on 100K. If I make a 10K lump sum payment, I now owe 90K and the interest on 90K.

With a recast I will still owe interest on 90K, but it gets spread out and I would have a lower monthly payment for the next 20 years.
Without a recast I will still owe interest on 90K, but the payment stays the same I would just end up paying the loan off sooner.

 

[A to Dah K]

Here is some quotes regarding principal only payments from mortgage sites.





If I have 20 years left with a 100K balance, then I owe 100K and the interest on 100K. If I make a 10K lump sum payment, I now owe 90K and the interest on 90K.

With a recast I will still owe interest on 90K, but it gets spread out and I would have a lower monthly payment for the next 20 years.
Without a recast I will still owe interest on 90K, but the payment stays the same I would just end up paying the loan off sooner.

 

[doggface]

Right,but you don't have to carry the loan out. The mortgagee
Now has a lower payment which means extra funds, don't work that to your benefit then thats on you. Besides that though if you were to do a larger principle payment recast the numbers really change, also have to factor how much time is left on the loan currently. Diff factors make for diff results i guess

Ok, I wasn’t disagreeing with you and I appreciate the info.

 

[A to Dah K]

Ok, I wasn’t disagreeing with you and I appreciate the info.

It’s all good Fam, was just trying to get across that you most def save on interest. Ive done it twice

 

[DC_Dude]

 

[Helico-pterFunk]

What to Know Before Buying a Home

Five simple tips that can remove a whole lot of complexity.

www.esquire.com

 

[Helico-pterFunk]

CTV National News: Unpromising housing report

A new report is showcasing Canada's worsening housing crisis as homeownership becomes an impossible dream for most. Kathy Le reports.

bc.ctvnews.ca

 

[DC_Dude]

 

[Helico-pterFunk]

 

[Helico-pterFunk]

Less than 10 per cent of homeless shelters N.S. promised last year currently in place | Globalnews.ca

Nova Scotia announced in 2023 it was paying $7.5 million for 200 self-contained, fibreglass shelters, with 100 of them earmarked for use in Halifax.

globalnews.ca

 

[praetor]

 

[praetor]

 

[DC_Dude]

 

[Dr. Truth]

I’m not buying 75% of cacs own homes.

 

[praetor]

I’m not buying 75% of cacs own homes.

In the second quarter of 2022, the homeownership rate for white households was 75 percent compared to 45 percent for Black households, 48 percent for Hispanic households, and 57 percent for non-Hispanic households of any other race.

https://home.treasury.gov/news/featured-stories/racial-differences-in-economic-security-housing

 

[Politic Negro]

 

[Helico-pterFunk]

 

[praetor]

 

[praetor]

 

[DC_Dude]

 

[Helico-pterFunk]

Banks Are Finally Realizing What Climate Change Will Do to Housing

Extreme weather threatens the investment value of many properties, but financing for climate mitigation efforts are only just getting going.

www.wired.com

 

[praetor]

 

[praetor]

 

[DC_Dude]

 

[praetor]

Not surprising. Can't imagine too many people are flocking to Mississippi, West Virginia, and Wyoming.

 

[DC_Dude]

Not surprising. Can't imagine too many people are flocking to Mississippi, West Virginia, and Wyoming.

Yup. College and that’s it lol

 

[Helico-pterFunk]

Property owners take NDP government to court over new short-term rental rules

A handful of members of a group of property owners from across B.C., known as the West Coast Association of Property Owners, assembled outside the B.C. Supreme Court in Victoria on Monday during a break in their court case.

bc.ctvnews.ca

 

[havelcok]

Hopium?

 

[Helico-pterFunk]

1 in 4 Vancouver tenants spending more than half their income on rent: report

The path to homeownership in Vancouver is becoming increasingly out-of-reach for many renters.

bc.ctvnews.ca

 

[Helico-pterFunk]

Here's how to take advantage of the market conditions to buy a home

The decrease in the Bank of Canada's (BoC) interest rate has helped buyers gain more confidence in the real estate market, but an Ottawa real estate broker says uncertainty remains an issue leaving some buyers skeptical.

ottawa.ctvnews.ca

 

[praetor]

White folks "found" this story like they found America.