Yeah and you have to pay closing again . Fucked if you have a low ass rate in the 2’s or 3’s and jump to 6
So when’s the housing bubble bursting?
- Thread starter Dr. Truth
- Start date
oh my damn.
So if you bought a house with an interest rate of 3.5%, and you want to use the equity you have earned, then you would have to refinance at the current rate, which is ~6%? That would mean your monthly payment would go up. It seems like a trap.
people may not be able to afford that new payment. Unless they use the equity to basically pay the monthly house payment, which doesn’t seem like a bad idea short term if you’re trying to save money.
Which is better? The loan or line of credit?
Yup because they will open a new loan on the amount you still owe plus the amount you want to take out. So they are adding to ur loan amount back to your current loan balance Unless people have a tiny amount left to pay off the crib right now is the worst time to take out a home equity loan
ideally you only wanna refi when rates are lower... unless you're cash strapped and in a jam, and at that point it doesnt matter.. you need what you need.
Depends on what your need is and rate.
Loan is lump sum. Line of credit is take out as you need.
Depends. You can cash out for almost the current value of the house but your cash out amount finance rate will more likely be more than the mortgage rate. However, you get the liquid to do whatever you want until you sell the house or default. So
A 500k current market house (yours) can cash out and get 80-100 of the current market value of the house. Let’s say 480k. You have to pay the loan amount back ( current market value) or default, sell and absorb the cash out. Minus what you owe. More likely than not at a 4-7% finance rate of the cash out. If you got in good your mortgage is no more than 4% fixed over 30 +/- years.
Mortgage is long term, cash out puts money in your pocket now unless you sell which will be at height of your houses current value. So you sell at 500k and recoup the difference in either the loan or sell. Maybe both. Bottomline, take advantage now if you want that money.
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Some have no closing which isn’t much anyway unless you’re strapped. If you came in with equity ( like I did) then go low with the cash out or refinance at the least a lower finance rate. You get into the sub 3s, 2s mortgage rate you’re good. If you take The money on a cash out make sure there is no prepay penalty or penalty for paying off early. Fixed, always fixed man! Don’t sign shit that says variable nothing!
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Not necessarily. It depends on your mortgage contract. Older ones didn't stipulate that you couldn't borrow against your home until it was paid off, because the original lender would be first in line for any foreclosure settlement funds. Some newer mortgage contracts may strictly forbid you from securing any additional loans with your home equity as security (a second mortgage) or at least without their consent. In that case they'll usually want you to do the second loan with them or deny you.
Vancouver's June home sales down 35 per cent from last year: board
The Real Estate Board of Greater Vancouver says last month's home sales dropped by about 35 per cent since last June and 16 per cent from May 2022 as houses remained on the market longer and interest rates rose.
Vancouver's June home sales down 35 per cent from last year: board
The Real Estate Board of Greater Vancouver says last month's home sales dropped by about 35 per cent since last June and 16 per cent from May 2022 as houses remained on the market longer and interest rates rose.bc.ctvnews.ca
Sales have slowed down here, but people are still over listing. I think this is the residual effects from the first half of the year when things were booming.
Yea but its been the reverse for the last 10 yrs interest retes were low as shit thats prob why they were taking out equity at these levels
Doesn't matter.
The Fed are expected to raise the interest rates another three quarters of a point by the end of the month.
How is that a plunge when my current rate is 2.6%
it was 5.75% in may
we are about to go to a meeting now to sign some last paperwork and fork over more money since our approval's complete. we got in a 4.99% but the nice thing is with this mortgage company if the rate drops it will automatically drop for us as well.
also got an 11 year tax abatement on the actual home being built
VA will in some cases let you take out the entire value of the house. Post of others do to 85% of the homes current value, then you have the HELOCs. If you bad with cash those ensure you use the money for upgrades which is cool.
In this market that still isn’t bad especially if you can pay it down early and not let that finance rate bite you in the long term. One girl I know said they told her 9.2% I’m like nahhhhhh, not me! Wait it out!
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Some programs can get you past it and or roll it into loan/refi so it don’t hurt as much lol
Government backed, especially VA, loans are often more considerate and reasonable. That's how the white middle class exploded after WW2. They got VA, Fannie Mae, Freddie Mac loans, paid the mortgage down some and then used the equity to add on, send their kids to college, start businesses, etc... Now, newer private lender mortgage contracts are much more restrictive.
No thanks lol
Yeah it'll allow us to refi without closing cost
So now this is happening, there is no need to put down a high due-diligence. When shit was booming, a high due-diligence was part of the offering to get houses off the market. So now, buyers can put in a smaller due-diligence and still ask over the listing price in case. So if the buyer backs out of the contract, they will only lost a couple of thousand instead of 10k or more like people were offering a few months ago.
Opendoor are straight lowballing people too but I think maybe the deals are falling through because people are doing the true math. Shit is expensive so they let ‘em know they can’t afford it. Most people should wait this out.
Vancouver realtor says interest rate spike a big blow for first-time buyers
A Vancouver-based realtor says the Bank of Canada’s interest rate hike is a huge blow for first-time buyers in one of the country's most expensive real estate markets.
$625/month for a 60-square-foot sleeping pod? That's what's being advertised in Metro Vancouver
Craigslist postings for relatively affordable shared accommodation in Metro Vancouver can include anything from tiny windowless dens to parked travel trailers. But a recent posting may be a first for the region.
Rents in Vancouver continue to rise, with no relief in sight: report
Vancouver once again has the dubious distinction of being the most expensive city in Canada for renters, along with having the highest year-over-year rate price increase, a new report says.
Home prices are quite expensive here. 1 and 2-bedroom condos going for 500 - 700k.
3-bedroom townhomes often in the 900k - 1.2M range.
I hope some of these investors are stuck. They foul for buying up whole neighborhoods and trying to rent them out for insane prices. People ain’t going for it.
Wages ain’t going up enough for any of this to make sense, especially in my city. House prices are still overinflated, but we are seeing decreases.
Wages ain’t going up enough for any of this to make sense, especially in my city. House prices are still overinflated, but we are seeing decreases.