Mortgage rates

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There's a fine balance between being too old to enjoy your cash and frittering it away too early and living like a mouse later on.

I have a retired friend who is…frugal. To the point of him doing practically nothing and obsessing over every penny. He realized he wasn't actually living. He opened up the combo lock on his wallet and bought a few toys and is much happier now.

I know I'm fiscally irresponsible but I'm also saving a reasonable amount now and buying a few toys when I want. Having no kids helps.
 
Amazon said:
My mortgage is also up in November. Going from 2.04% to who knows what, but definitely higher 😬

Going to look at paying weekly so more goes towards principal than interest. Right now we're doing biweekly.

I keep looking at "new" houses/properties, but then do the math on the higher amount and question if it's worth it. If I just live where I am forever, I'll be mortgage free by or before 50 years old.
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The old story:

You're debt free until 20, living at home. In your 20's you build debt as you establish your career and home. You pay off your debt in your 30's and from 40 on, build your wealth.

Once upon a time there was a girl named Goldilocks....
 
crankcall said:
If anyone really knew what was best , there would not be two options and brokers would all own Ferraris .
I was always fixed because I knew I could cover that amount and keep the house for x yrs . Friends went variable and either told me how much they saved or how much more it was costing .
Fixed allowed me to take a Twenty five yr mortgage, use two a month payments that would pay it out in twenty one yrs . With a couple windfalls it was gone in nineteen. Fixed served my needs .
I paid a high of nine point five and was on a fixed mortgage that crazy yr they went to seventeen, fixed for five yrs helped me jump that wave , but that was just luck on my part . Just remember banks are not your friend , thier job is to give you as much much credit as they can , swallowing the interest in on you .


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Banks can be your friend. I use the same bank for every thing... they have treated me pretty well.

My invest guy made a couple of calls and my bank came back with an offer in the high 3s for a conventional mortgage, and the high 4s for an additional HELOC.

If you ever get in a financial bind, banks are a lot easier to deal with than the alternatives if you hit a rough patch.
 
crankcall said:
Sitting with a friend last night I jokingly asked , how long will it take to pay off your two million dollar mortgage on your cottage ? His answer , who cares? My two million is earning five to seven percent and I borrowed this money at three . If it swings wrong I could pay it out . Or sell the place and take my property value gains . Why would I use my own money if I didn’t have to? I guess that’s why he has a three million dollar cottage and I do not lol.
@shanekingsly , that’s a great info list , a lot of people take what appears the best deal not looking at the fine points .


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My investment guy did something like that for me. I borrow against my house and invest with him.

He made a few calls and got me an offer in the high 3s. The investment return has exceeded the principal of the mortgage thanks to a strong markets.

I'm not sure I'd roll the dice on a 2m cottage, there is a ton of risk and some heavy expenses in that. Real estate is often highly leveraged so market corrections can be deadly. Staying power isn't just making payments when a mortgage goes underwater.
 
I’m now more seriously considering borrowing 10-20k at 4% and dumping it into a higher return…but as always my fear is losing it.

This would only be for VGRO or XGRO. Nothing like a single meme stock or normal stock (maybe Enbridge or good dividend payer to just pay down the principal).

But I think we’ve got a Stocks / Investing thread somewhere around here.
 
Lightcycle said:
Definitely. However this chart shows that many people are skewing towards the other end of the spectrum.

Graph-of-Canadian-government-debt-and-consumer-debt-historic-e1573510073839.png


Understood that we're in a period of stagnating wages and high inflation, but for many older folks, they've lived through two or three similar downturns in their lives and many have embraced austerity measures during those times instead of turning to financing to satisfy their cravings for toys, luxuries and other depreciating assets.

I know a lot of younger people in their 30s and 40s who aren't TechBros and are still able to live within their means even in this challenging environment.

yayaokayboomerandallthatnoise
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Th early end of that chart doesn't reflect the instability in pricing today. It can be so erratic that you don't remember what you paid for a product last week. You think WTH and tap your card.
 
nobbie48 said:
The old story:

You're debt free until 20, living at home. In your 20's you build debt as you establish your career and home. You pay off your debt in your 30's and from 40 on, build your wealth.

Once upon a time there was a girl named Goldilocks....
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My story. Guess I'm old. Oh, is 60 considered old?
 
Splitting firewood , pulling carts and eating cabbage keeps them fit .

I borrowed about two hundred fifty k against my HELOC to invest in around two thousand and six , then came two thousand and eight . The calendar rolled over , then my stocks rolled over, the money was gone but I still owed the debt to my HELOC. That sucked .
My early in life boss/mentor told me to only put money into the stock market you can afford to loose . Wife and I did not divorce but I was very unpopular. I’m not convinced a HELOC “ code for easy access mortgage “ is in everyone’s best interest because I don’t think they get used responsibly by everyone. But that’s thier business.



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nobbie48 said:
Th early end of that chart doesn't reflect the instability in pricing today. It can be so erratic that you don't remember what you paid for a product last week. You think WTH and tap your card.
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Not according to this chart:

inflation-history-charts-2.png


Even given that the CPI is a highly-massaged figure, the numbers are still historically low compared to the late 70s-early 80s.

Official figures are 3.9% for 2023. 2.4% for 2024. My butt-dyno puts it around 5-7% the last few years, IMO.
 
Lightcycle said:
Not according to this chart:

inflation-history-charts-2.png


Even given that the CPI is a highly-massaged figure, the numbers are still historically low compared to the mid 70s-mid 80s.

3.9% for 2023. 2.4% for 2024.
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From what I’m told, the BoC rate is the lending rate to the banks, the banks set their interest rate or the so called prime
 
I signed a variable at 4.45. Hopefully the rate will go down at the end of the month.

That’s the prediction
 
Lightcycle said:
Not according to this chart:

inflation-history-charts-2.png


Even given that the CPI is a highly-massaged figure, the numbers are still historically low compared to the late 70s-early 80s.

Official figures are 3.9% for 2023. 2.4% for 2024. My butt-dyno puts it around 5-7% the last few years, IMO.
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Everyone's CPI is different. A person living downtown with a small mortgage largely avoids the interest rate potion. If they don't own vehicles there's another part of the CPI affected. Compared to suburbanite with large heavily mortgaged house and two cars the townie is way ahead.
 
nobbie48 said:
Everyone's CPI is different. A person living downtown with a small mortgage largely avoids the interest rate potion. If they don't own vehicles there's another part of the CPI affected. Compared to suburbanite with large heavily mortgaged house and two cars the townie is way ahead.
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Everyone's CPI is different, indeed.

That's why all these charts are national averages.
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