▲ 137 ▼ the bank's second house (thelemmy.club) submitted 1 day ago by oldmanalex@sh.itjust.works to c/shitposting@lemmy.today 35 comments fedilink hide all child comments
[–] halfapage@lemmy.world 3 points 1 day ago (2 children) what permalink fedilink source parent hideshow 4 child comments replies: [–] ChairmanMeow@programming.dev 20 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. permalink fedilink source parent hideshow 2 child comments replies: [–] caseyweederman@lemmy.ca 18 points 1 day ago (2 children) Economics is stupid. permalink fedilink source parent hideshow 4 child comments replies: [–] agamemnonymous@sh.itjust.works 7 points 1 day ago (1 child) Economics is fine. Finance is stupid. permalink fedilink source parent hideshow 2 child comments replies: [–] caseyweederman@lemmy.ca 2 points 1 day ago (1 child) both permalink fedilink source parent hideshow 2 child comments replies: [–] agamemnonymous@sh.itjust.works 6 points 1 day ago* (last edited 1 day ago) Economics is just the study of how production happens. Some economic models and theories suck, but it can't "suck" any more than biology or physics. Finance is the man-made bullshit. permalink fedilink source parent [–] baines@lemmy.cafe 4 points 1 day ago* because it is not made for poors permalink fedilink source parent [–] mossberg590@lemmy.world 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. permalink fedilink source parent hideshow 6 child comments replies: [–] criticon@lemmy.ca 4 points 1 day ago Not to mention that hopefully your salary also increases so you can pay to capital if the interest rate is higher than what you can get is you invest it permalink fedilink source parent [–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 1 day 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. permalink fedilink source parent hideshow 2 child comments replies: [–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 23 hours ago There are many options that make the whole thing more complicated. For demonstration a 30 year fixed is easiest. permalink fedilink source parent [–] terranoid@lemmy.cafe 2 points 1 day ago Motorcycles don't have to be expensive. Buy used, repair/maintain yourself and it's not bad permalink fedilink source parent
[–] ChairmanMeow@programming.dev 20 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. permalink fedilink source parent hideshow 2 child comments replies: [–] caseyweederman@lemmy.ca 18 points 1 day ago (2 children) Economics is stupid. permalink fedilink source parent hideshow 4 child comments replies: [–] agamemnonymous@sh.itjust.works 7 points 1 day ago (1 child) Economics is fine. Finance is stupid. permalink fedilink source parent hideshow 2 child comments replies: [–] caseyweederman@lemmy.ca 2 points 1 day ago (1 child) both permalink fedilink source parent hideshow 2 child comments replies: [–] agamemnonymous@sh.itjust.works 6 points 1 day ago* (last edited 1 day ago) Economics is just the study of how production happens. Some economic models and theories suck, but it can't "suck" any more than biology or physics. Finance is the man-made bullshit. permalink fedilink source parent [–] baines@lemmy.cafe 4 points 1 day ago* because it is not made for poors permalink fedilink source parent
[–] caseyweederman@lemmy.ca 18 points 1 day ago (2 children) Economics is stupid. permalink fedilink source parent hideshow 4 child comments replies: [–] agamemnonymous@sh.itjust.works 7 points 1 day ago (1 child) Economics is fine. Finance is stupid. permalink fedilink source parent hideshow 2 child comments replies: [–] caseyweederman@lemmy.ca 2 points 1 day ago (1 child) both permalink fedilink source parent hideshow 2 child comments replies: [–] agamemnonymous@sh.itjust.works 6 points 1 day ago* (last edited 1 day ago) Economics is just the study of how production happens. Some economic models and theories suck, but it can't "suck" any more than biology or physics. Finance is the man-made bullshit. permalink fedilink source parent [–] baines@lemmy.cafe 4 points 1 day ago* because it is not made for poors permalink fedilink source parent
[–] agamemnonymous@sh.itjust.works 7 points 1 day ago (1 child) Economics is fine. Finance is stupid. permalink fedilink source parent hideshow 2 child comments replies: [–] caseyweederman@lemmy.ca 2 points 1 day ago (1 child) both permalink fedilink source parent hideshow 2 child comments replies: [–] agamemnonymous@sh.itjust.works 6 points 1 day ago* (last edited 1 day ago) Economics is just the study of how production happens. Some economic models and theories suck, but it can't "suck" any more than biology or physics. Finance is the man-made bullshit. permalink fedilink source parent
[–] caseyweederman@lemmy.ca 2 points 1 day ago (1 child) both permalink fedilink source parent hideshow 2 child comments replies: [–] agamemnonymous@sh.itjust.works 6 points 1 day ago* (last edited 1 day ago) Economics is just the study of how production happens. Some economic models and theories suck, but it can't "suck" any more than biology or physics. Finance is the man-made bullshit. permalink fedilink source parent
[–] agamemnonymous@sh.itjust.works 6 points 1 day ago* (last edited 1 day ago) Economics is just the study of how production happens. Some economic models and theories suck, but it can't "suck" any more than biology or physics. Finance is the man-made bullshit. permalink fedilink source parent
[–] baines@lemmy.cafe 4 points 1 day ago* because it is not made for poors permalink fedilink source parent
[–] mossberg590@lemmy.world 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. permalink fedilink source parent hideshow 6 child comments replies: [–] criticon@lemmy.ca 4 points 1 day ago Not to mention that hopefully your salary also increases so you can pay to capital if the interest rate is higher than what you can get is you invest it permalink fedilink source parent [–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 1 day 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. permalink fedilink source parent hideshow 2 child comments replies: [–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 23 hours ago There are many options that make the whole thing more complicated. For demonstration a 30 year fixed is easiest. permalink fedilink source parent [–] terranoid@lemmy.cafe 2 points 1 day ago Motorcycles don't have to be expensive. Buy used, repair/maintain yourself and it's not bad permalink fedilink source parent
[–] criticon@lemmy.ca 4 points 1 day ago Not to mention that hopefully your salary also increases so you can pay to capital if the interest rate is higher than what you can get is you invest it permalink fedilink source parent
[–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 1 day 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. permalink fedilink source parent hideshow 2 child comments replies: [–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 23 hours ago There are many options that make the whole thing more complicated. For demonstration a 30 year fixed is easiest. permalink fedilink source parent
[–] mossberg590@lemmy.world 1 point 1 day 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. permalink fedilink source parent hideshow 2 child comments replies: [–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 23 hours ago There are many options that make the whole thing more complicated. For demonstration a 30 year fixed is easiest. permalink fedilink source parent
[–] rabber@lemmy.ca 2 points 1 day 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 permalink fedilink source parent hideshow 2 child comments replies: [–] mossberg590@lemmy.world 1 point 23 hours ago There are many options that make the whole thing more complicated. For demonstration a 30 year fixed is easiest. permalink fedilink source parent
[–] mossberg590@lemmy.world 1 point 23 hours ago There are many options that make the whole thing more complicated. For demonstration a 30 year fixed is easiest. permalink fedilink source parent
[–] terranoid@lemmy.cafe 2 points 1 day ago Motorcycles don't have to be expensive. Buy used, repair/maintain yourself and it's not bad permalink fedilink source parent