Click to go to Forum Home Click to go to maXbimmer Home

Go Back   maXbimmer Forums > Misc > Off-topic
User Name
Password


Welcome to Maxbimmer.com!

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

Reply
 
Thread Tools Rate Thread Display Modes
Old 09-16-2009, 07:28 AM   #31
Blackedout95
5th Gear Member
 
Join Date: Feb 2009
Location: Canada
Posts: 1,107


Quote:
Originally Posted by E36is View Post
good thread, as im also in the market to purchase another property but in this case it will be a house. Correct me if im wrong here but the OP had stated he/she makes 43k/yr. Doing the math, with 43k isnt that only 150k mortgage? or am i missing something.
Yes and no, yes in the sense you would be smarter to only lend as much, no in the sense the bank will lend more based on their calculations.


Like I said the bank will look at allocating up to roughly 32% of your gross income minus expenses. It doesnt mean you can afford it and it doesnt mean you cannot, your life style will dictate that, eating out daily, liking new clothes, toys and traveling are usually not part of making $40k and using 32%towards shelter.
__________________
E46
Blackedout95 is offline   Reply With Quote
Old 09-16-2009, 08:10 AM   #32
E36is
'OldSchool..'
 
E36is's Avatar
 
Join Date: Sep 2005
Location: Burlington
Posts: 2,424
^^ isnt that how the american banks got into trouble? basically giving 'ninja' mortgages to people who simply couldnt afford it?

The only other way of securing a 248k mortgage is if the OP has another property and re-financing their mortgage and putting his/her first property into rental property.
__________________
'You don't buy all that jewellery and stick it on an ugly person.'
E36is is offline   Reply With Quote
Old 09-16-2009, 08:19 AM   #33
Blackedout95
5th Gear Member
 
Join Date: Feb 2009
Location: Canada
Posts: 1,107
Quote:
Originally Posted by E36is View Post
^^ isnt that how the american banks got into trouble?
Short answer, no.

You are forgetting a very important detail, the interest rate and if interest was all they were paying period to start.

While lenders did approve those who were not qualified by normal industry standards, they also had them in situations where their payments to start were either interestor had a very low introductary rate. Ultimately they are unable to afford the payments when the rate increases in the 1-2+ yrs that follow... Lending practices in the US became very suspect, a lot of greed but also a lot of stupid people who claim to never have read the fine print.

That is NOT the case here in Canada, we have MUCH stricter standards. In fact and do not quote me exactly but for the first time a few years ago the Canadian gov. allowed a 40 year ammortization, within one year almost HALF of all new applicants chose the 40yr amm. The government quickly stepped in and halted that, cutting it back to 35.

The mentality of Canadians has always been to pay off the mortgage, quite a different mind set in the United States.


Just a fun fact... There is a book that shows the inflation in things such as gas/milk/cars etc from 1950-2005, fifty years of something .. any way the point, while most items have seen costs in 50 yrs increase 10 fold the family home has increased 100 fold on average! Owning a home and paying it off has become MUCH more difficult. Many factors here, from greed to government regulations no specific culprit.
__________________
E46

Last edited by Blackedout95; 09-16-2009 at 08:24 AM.
Blackedout95 is offline   Reply With Quote
Old 09-16-2009, 08:47 AM   #34
E36is
'OldSchool..'
 
E36is's Avatar
 
Join Date: Sep 2005
Location: Burlington
Posts: 2,424
^^ thanks for the info, very helpful insight!
__________________
'You don't buy all that jewellery and stick it on an ugly person.'
E36is is offline   Reply With Quote
Reply

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -4. The time now is 10:57 PM.


Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
Maxbimmer Copyright 2001 - 2015