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[–] 36 points 1 day ago (2 children)

The joy is you get to pay pretty much the same each month for the entire 30 years. Insurance and property taxes will increase but that is fairly small increases. Now go look at what rent was 30 years ago. Imagine paying that today instead. Don't pay off your mortgage early, don't refinance (unless you can drop >1.5%), and ride the long con.

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  • [–] 3 points 19 hours ago

    Really, doesn't even take long. When I bought my first place here in Los Angeles, the mortgage was 2.6k, rent 2.2k for comparable places.

    Then boom, somehow it's 3.2k rent now and I'm paying 2.6k four years later. That's fucked up, of course, but that's how it works.

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  • [–] 3 points 1 day ago (2 children)
  • [–] 19 points 1 day ago (1 child)

    They're saying your interest payments may feel like much today, but because the currency devalues over time/inflation, it remaining constant will end up being cheaper in the long run.

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  • [–] 18 points 1 day ago (2 children)
  • [–] 7 points 19 hours ago (1 child)

    Economics is fine. Finance is stupid.

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  • [–] 10 points 1 day ago (3 children)

    Today a 30 year fixed at 6.48% for 400k with 80k down payment is $2,400 / month with insurance and property taxes, but let's just say 2,500. That currently will rent a nice 3 bedroom apartment in mid sized metropolitan areas. In 30 years the mortgage might be 3,000. What would a 3 bedroom apartment be renting for? 30 years ago it was 1,200 ish. So 30 years from now, 5,000 for that apartment?

    Mortgages make sense for the long term, not just equity (house value goes up) but stability in your monthly housing budget.

    That mortgage will end up costing 862k, not 400k. But let's be clear, 6.5% interest is horrendous, you can get a lower rate sometime in the next decade. This plan makes even more sense if the money you save as the years roll by you invest in retirement instead of getting a boat, motorcycle, or avocado toast.

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  • [–] 2 points 18 hours ago (1 child)

    I don't know how it works in the US but here you remortgage every 5 years with a new interest rate, and as we head into a bad recession, those rates are going to get insanely cheap

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  • [–] 1 point 18 hours ago (1 child)

    Re financing comes with fees and doesn't make sense to do often. They hide the fees into the new mortgage. Banks don't lower your costs for funsies.

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  • [–] 2 points 18 hours ago (1 child)

    I'm on floating mortgage so I don't think I'm affected - floating just follows the prime interest rate of the BoC + 1.5% or something

    Gambling to go with floating but to me its a no brainer that rates will get cheaper

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