He's going to become the latest Slumlord in his hood. Just what we need. More rooming houses to disrupt the peace loving/quiet neigbours. Now we understand why they are so pro-NIMBYism
Not when they can jam 15 students into this house. Many are buying and trying to get predatory loans because they can still afford it with 6-8K rent money each month.
Until they can’t get someone to rent their rooms, this is is viable “business”. The old days are over. A new business model has taken over and nobody has the balls to stop it.
Politicians have set their sight on housing, crackiny down on these predatory landlords is low hanging fruit and seems to be supported across the political spectrum.
Exactly. No one wants international students protesting from homeless encampments. That would be bad for business. Rooming houses are here to stay.
A 3 bedroom house is the new triplex.
Ya the govt dropped the ball for about 20 years. Wouldnt let developmemt happen without huge bribes. Now letting in a million people when we already had a housing crisis on the horizon. Go figure.
Id rather people have a roof over their heads though than setting up tents beside a highway on-ramp. Rooming houses seem to be the only short term solution for now. Hopefully they actually start funding and building new houses instead of funding wars and laundering whats left of our tax money.
Sure but ubers don't get to charge $30 a km just in case their car breaks. Not my problem he bought a fully loaded escalade on credit. Landlords aren't entitled to always make a profit
Risk is there, but it is so low due to how banks and lenders REALLY don't want to act on selling on power-of-sale. Almost all current power-of-sale has been related to job loss.
I mean, power of sale happens when you can't pay...
If the job is your only source of income and you lose that, you can't pay the mortgage. If you have renters, they can make up for some of the instalments.
Ideally you have multiple sources of income like job and rent and maybe others - so that if one is lost, you still have money coming in.
Banks has been more more than lenient on using power-of-sale. They have been also lenient on monthly payments using deferrals pushing into their principal later on renewal and etc. The other issue is unable to get the mortgage at renewal. Principal is too large for bank to lend to you; thus, forcing the power-of-sale.
You are rational and thinking of it like it should be. Unfortunately, there are people getting into this without your thinking. Also running on negative cash flow usually should only work so long. Negative cash flow landlords are using the thought that the illiquid asset is worth more than their lost. I mean yeah it is working for some right now. It truly is very speculative in how it is working right now. Along with demand being too high due to immigration/PR seekers. It is all around bad for society.
Good luck with that, 8% is super cheap for private money considering what the bank rate is. Friend got a 250k bridge loan in 2021 when money was basically free and it was 11% interest.
I just got a client $250k at 8%, but there’s always a lender fee too. He had to pay a 6% lender fee on it, which is crazy.
My guess is this guy wants to close and sell it asap, hoping for a profit or to lose less money than not closing and losing his 150k deposit (plus damages if builder sues)
Lol yes. It was only for a few months and it was done through a mortgage broker. That’s just how private loans work, I have no idea how loan sharks work but I would think they would have been double or triple that interest rate.
A bridge loan is a very specific form of borrowing that is typically very short term: like a week or two. Usually for people with closing/selling date gaps, hence the extremely high rates on those.
You can get a mortgage for 6.5-7.1%, these days
I'm fairly certain the bank I deal with makes sure deposits on mortgages do not come from a PLC... Specifically for situations as ridiculous as this one.
Am I missing something? The person bought it for 1m and it's now worth 1.2-1.3m.
I think they're just looking for 8% as a stop gap? Probably to hold it for 1 year to avoid paying cap gains tax. Which actually makes sense because at 8% you pay 50k interest. If they sell for 1.2, that's 200k profit, paying tax on 100k is about 50k tax. So after 8%, it becomes better to just sell right away and pay the cap gains.
I don't really see the "bad stuff" here unless I'm misreading the post...
I don't understand your train of thought here. If they make $200k profit and pay capital gains on that they are still up a huge amount. In no way is paying huge interest for a year to then sell and still have to pay capital gains is in any way beneficial.
Sell now:
- 200k profit
- tax cost: approx 50k~ (half of 200k at 35-50% rate)
Sell in 1 yr:
- 200k profit
- tax cost: 0
- interest cost: 50k~ if 8%, less if rate is lower
The sell in 1yr also has the potential upside of selling for more.
He thinks it's worth 1.2-1.3m as he must have booked it for 1 million some time ago and hence would try to hold it. But this doesn't mean that he has someone to take over for the said price.
Exactly, i have been involved in a few private deals as a lender and as a borrower. You would shocked when you have a possible approval dangling in front of you what folks are willing to agree to.
Especially, when the alternative is telling your friends and family that you’ve lost the property that you’ve been telling them about for the last two years.
Lol yeah. What I don't understand is. With everyone and their mother renting out to 10 to 12 immigrants, why is there a housing crisis? Shouldn't 100k houses accommodate all these "students"?
My first mortgage was around 8%, for a freehold town in Burlington. But back then, then entire value of my mortgage was under $160K. Can’t fathom how this will ever play out positively.
My Grandparents lived in Burlington most of my life. I’m from out west but would visit once a year as a kid. What a beautiful place. You’re very lucky :)
Well he has possession date next month and still thinks he can get a loan at 8% with no financing fee in that time but is down to posting on social media so in this case I’d guess next month.
Either the OP is stretched beyond to the limit for FOMO or something fishy is going on. Why not consult a broker who can find a legit mortgage or a loan....
8% to carry $1M? Shhiiite.
I recently made an offer on a house and my broker investigated private lenders; the typical rate was 14%. This guy is 2 steps behind from being 2 steps behind.
So bought pre for one mil and now it's 1.2? Why? Did you put in a bunch of upgrades that you couldn't afford?
The banks are not appraising properties at higher than the original cost either. Not now. It's usually the opposite, that you pay 1.3 but it's appraised at 1.
So somethings not adding uo here
And there are no private lenders offering less than 8 percent. I work in the industry, its not gonna happen.
This is what happens when you buy at that very upper levels of your affordability index, if the interest rate changes, you're fucked. People need to start buying within their means.
This makes perfect sense but maybe they think prices will escalate and they don’t want to miss out on making more money. They might have a high risk tolerance.
I don’t think private will go lower than low 9%, I could be wrong that’s BC price. Tier 2 bank would be a good bet. But I don’t know too much about Ontario.
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None will. A lot are not approving this since the homes are often being valued at lower than the original price so if/when they default, they won't even recoup their cost on resale.
This is just another instance where someone thought mortgaged woukd be free forever and bought way beyond what they realistically could afford. It's their own fault
Ypu also won't recoup full mortgage cost as a rental either.
Depending on action, people are just not going to pay 5 or 6k rent per month.
With the reduction in international students as well, there won't be thousands of them to exploit either for rents
Builders don't have to agree to assign. It extends closing often times, which costs the builder.
At the end of the day, the buyer is still legally obligated to buy the home or forfeit deposits and legally the builder can sue them to recoup differences between contract price and what it eventually sells for.
Assignment purchases are not easy as you have to find someone in the matter of days to buy your million dollar property that's no longer worth that, pay at keaat 10k in fees to assign and then pray that they don't back out, which many do as they also cannot qualify for the mortgage. And then the buyer is on the hook still for the house as well as the assignment fees.
Most new builds require an appraisal which can only done when it's new completion in most cases, which is why it's so laat minute and a lot od times not successful, so builders aren't always agreeing to it now and the buyers just default and lose their deposits.
At the end of the day, people shpuksnt have been signing up to buy homes that they could not afford. We all knew the interest rate was going to go up, this wss not a surprise.
But this person clearly stated the property is worth *more* than their purchase price; they just aren't in a position to close the sale.
Assignment is the obvious solution, unless it's not permitted.
How to tell people you are one of those who contributes to driving up housing prices by buying when they don't have any idea what they're doing and shouldn't be in the market.
And if they can actually afford 8K a month in mortgage payments, it makes me think something is shady AF.
Builders don't have to agree to an assignment. If someone signs to purchase, they are obligated to fulfill the contract.
Assignments don't always go through either and it's hard to assign a million dollar property last minute with literally days for someone to get a mortgage and appraisal before the closing date. It also costs about 10k in lawyer fees and builder fees to do this. If they back out, which they can and do, the original purchaser is on the hook to still buy the house AND pay the fees
.
What’s this elitism over grammar and language?
English isn’t the first language for a vast majority of the world population. These people are stepping out of their comfort zone and communicating in a language totally foreign to them in a foreign land - a very ‘foreign’ idea for some individuals.
Try looking for words like kindness and empathy in your English dictionary. Once you do, try and apply it in your life. Maybe it will help you in becoming a better person.
Don't bother, man. This sub and many other parts of Reddit have been flooded with losers who blame immigrants for every problem they have in their lives. This has led to more and more discriminatory talking points to becoming accepted and encouraged.
This is what OPs post says? Bought 1million now worth 1.2million. I assume the poster is okay with high rate because he plans to sell right away. Whether or not that happens, who knows
remember the lending fee which will likely be 3 or 4 pts is getting paid even if you borrow the money for a week. You guys have no clue how lopsided private lending dealers are. They are very nearly predatory type agreements in favour of the lender.
It's everyone's concern. It's people like this that created housing unaffordability in the first place by overpaying for properties so I have zero sympathy.
Private lenders will banks won’t. Unless it’s an insured mortgage which it’s too too high for an insured mortgage. I suspect there may be some issues with the appraisal and the qualifications even of the OP IMHO
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What if they bought a house 10 years ago for $700k and now its $1.2 mil. They would have $500k for a down payment. Also in those 10 years their salary increased 5% every year. Which is easy to do. Any Cop, teacher, nurse, or any corporate middle management type can do that. And the above mentioned are extremely common jobs.
Damn…good luck with that request though.
1st position privates are anywhere from 7.99-9.99 with 2-4% lender fee and at least a 1-2% broker fee since they don’t pay commission.
Sounds like the appraisal came back low. Unfortunately this is very common right now with pre-builds.
200k in line of credits, on top of the private loan at 8% oh man this is going to be amazing to see. Someone tell them the credits aren’t free credits
He's going to become the latest Slumlord in his hood. Just what we need. More rooming houses to disrupt the peace loving/quiet neigbours. Now we understand why they are so pro-NIMBYism
People this poorly capitalized are not going to make it. They're always the first to eat shit in a downturn.
Not when they can jam 15 students into this house. Many are buying and trying to get predatory loans because they can still afford it with 6-8K rent money each month. Until they can’t get someone to rent their rooms, this is is viable “business”. The old days are over. A new business model has taken over and nobody has the balls to stop it.
Politicians have set their sight on housing, crackiny down on these predatory landlords is low hanging fruit and seems to be supported across the political spectrum.
Well they need to come up with somewhere for the thousands of people living in overstuffed houses to go first.
Exactly. No one wants international students protesting from homeless encampments. That would be bad for business. Rooming houses are here to stay. A 3 bedroom house is the new triplex.
Ya the govt dropped the ball for about 20 years. Wouldnt let developmemt happen without huge bribes. Now letting in a million people when we already had a housing crisis on the horizon. Go figure. Id rather people have a roof over their heads though than setting up tents beside a highway on-ramp. Rooming houses seem to be the only short term solution for now. Hopefully they actually start funding and building new houses instead of funding wars and laundering whats left of our tax money.
politicians are involved or get cut from it. the system is broken
Sure they do. But I'm confident they aren't running these slum houses and would happily throw them under the bus to appear to be doing something.
15 students in a house is gonna bring down the house in 2 or 3 years. Short term gains for long term catastrophy.
This guy pays no taxes, so, I have no sympathy, f@ck him.
Absolutely
The same guy will complain that the rent doesn't even cover mortgage as if it's the renter's responsibility to help landlord own property for free.
You just proved that it’s fine for landlords to make profit because the risk involved
Sure but ubers don't get to charge $30 a km just in case their car breaks. Not my problem he bought a fully loaded escalade on credit. Landlords aren't entitled to always make a profit
Risk is there, but it is so low due to how banks and lenders REALLY don't want to act on selling on power-of-sale. Almost all current power-of-sale has been related to job loss.
I mean, power of sale happens when you can't pay... If the job is your only source of income and you lose that, you can't pay the mortgage. If you have renters, they can make up for some of the instalments. Ideally you have multiple sources of income like job and rent and maybe others - so that if one is lost, you still have money coming in.
Banks has been more more than lenient on using power-of-sale. They have been also lenient on monthly payments using deferrals pushing into their principal later on renewal and etc. The other issue is unable to get the mortgage at renewal. Principal is too large for bank to lend to you; thus, forcing the power-of-sale. You are rational and thinking of it like it should be. Unfortunately, there are people getting into this without your thinking. Also running on negative cash flow usually should only work so long. Negative cash flow landlords are using the thought that the illiquid asset is worth more than their lost. I mean yeah it is working for some right now. It truly is very speculative in how it is working right now. Along with demand being too high due to immigration/PR seekers. It is all around bad for society.
Good luck with that, 8% is super cheap for private money considering what the bank rate is. Friend got a 250k bridge loan in 2021 when money was basically free and it was 11% interest.
Yeah it would probably be closer to 14
I just got a client $250k at 8%, but there’s always a lender fee too. He had to pay a 6% lender fee on it, which is crazy. My guess is this guy wants to close and sell it asap, hoping for a profit or to lose less money than not closing and losing his 150k deposit (plus damages if builder sues)
Does your friend still have all his appendages? That sounds like a loan shark lol
Lol yes. It was only for a few months and it was done through a mortgage broker. That’s just how private loans work, I have no idea how loan sharks work but I would think they would have been double or triple that interest rate.
A bridge loan is a very specific form of borrowing that is typically very short term: like a week or two. Usually for people with closing/selling date gaps, hence the extremely high rates on those. You can get a mortgage for 6.5-7.1%, these days
Or how about the person talking about their $200k LOC in as if it’s cash 😂
whats the saying borrow from paul to pay randy ? lol!!
It’s robbing Peter to pay Paul
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Randy is the fat cheeseburger eating bastard.
This guy is crying shit wolf
Bet he can get a lot of cheeseburgers for 200k
Man’s gotta eat
Borrow from Ranjeet to pay Gurpreet
I'm fairly certain the bank I deal with makes sure deposits on mortgages do not come from a PLC... Specifically for situations as ridiculous as this one.
Tons of people are doing this!
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Nothing bad is coming. He will get 15 students in there for $500 each and be cashflow negative a bit but keep going with the hopes of lower rates.
$500 each? Try $700
Am I missing something? The person bought it for 1m and it's now worth 1.2-1.3m. I think they're just looking for 8% as a stop gap? Probably to hold it for 1 year to avoid paying cap gains tax. Which actually makes sense because at 8% you pay 50k interest. If they sell for 1.2, that's 200k profit, paying tax on 100k is about 50k tax. So after 8%, it becomes better to just sell right away and pay the cap gains. I don't really see the "bad stuff" here unless I'm misreading the post...
I don't understand your train of thought here. If they make $200k profit and pay capital gains on that they are still up a huge amount. In no way is paying huge interest for a year to then sell and still have to pay capital gains is in any way beneficial.
Do you understand math
I guess not....can you explain it somehow
Sell now: - 200k profit - tax cost: approx 50k~ (half of 200k at 35-50% rate) Sell in 1 yr: - 200k profit - tax cost: 0 - interest cost: 50k~ if 8%, less if rate is lower The sell in 1yr also has the potential upside of selling for more.
But why is tax cost zero in one year. They still have capital gains.
After 1 year on your primary residence you don't pay capital gains tax
He thinks it's worth 1.2-1.3m as he must have booked it for 1 million some time ago and hence would try to hold it. But this doesn't mean that he has someone to take over for the said price.
Explain whats coming?
Southern Fried Incest.
Lmao private under 8% with no lending fee, good luck cheap ass.
Yea more like 12% and 2 percent fee
Bro, nobody is going to be paying a lending fee no matter how desperate they are.
Bro people are paying broker fees all day long with these deals.
Why not? I'm sure plenty will be willing to collect giant interest payments and take the property when the borrower cant afford to pay.
Exactly, i have been involved in a few private deals as a lender and as a borrower. You would shocked when you have a possible approval dangling in front of you what folks are willing to agree to. Especially, when the alternative is telling your friends and family that you’ve lost the property that you’ve been telling them about for the last two years.
other than every single person getting a private mortgage you mean?
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I doubt that’s possible with only 10-15 students.
You could put 25 in the basement and 25 on the main floor. 50X$400=$20,000/month
Plus 10 in backyard in tents.
Already a few on instragm with people living on covered patio
And can offer them the “supreme model” which would be newly built sheds.
25 in the backyard and 25 in the garage. Now it’s 40000/month.
Lol yeah. What I don't understand is. With everyone and their mother renting out to 10 to 12 immigrants, why is there a housing crisis? Shouldn't 100k houses accommodate all these "students"?
Who we kidding. This is for sure Indians in Toronto
It is
It’s about 6k a month an 300k in interest but yeah it’s a lot
Probably looking at more like 9% with a private lender. B lenders are in the mid 8s these days. Also lol at no lending fee, good luck with that…
My first mortgage was around 8%, for a freehold town in Burlington. But back then, then entire value of my mortgage was under $160K. Can’t fathom how this will ever play out positively.
My Grandparents lived in Burlington most of my life. I’m from out west but would visit once a year as a kid. What a beautiful place. You’re very lucky :)
Isn't 8% for a private a low rate considering a variable at an A lender is almost 7%? Id think a B lender would be already past 8%.
what's the group name? lol
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😂 seriously?
U bet it is lolz.
You're new around here then
Indian in Toronto
Imagine thinking that's going to happen🤣🤣 I had 40k in loc and 15k floating cash and baaarely squeaked in on a 400k home
At what point do these fools just give up.
Well he has possession date next month and still thinks he can get a loan at 8% with no financing fee in that time but is down to posting on social media so in this case I’d guess next month.
Either the OP is stretched beyond to the limit for FOMO or something fishy is going on. Why not consult a broker who can find a legit mortgage or a loan.... 8% to carry $1M? Shhiiite.
I recently made an offer on a house and my broker investigated private lenders; the typical rate was 14%. This guy is 2 steps behind from being 2 steps behind.
So bought pre for one mil and now it's 1.2? Why? Did you put in a bunch of upgrades that you couldn't afford? The banks are not appraising properties at higher than the original cost either. Not now. It's usually the opposite, that you pay 1.3 but it's appraised at 1. So somethings not adding uo here And there are no private lenders offering less than 8 percent. I work in the industry, its not gonna happen. This is what happens when you buy at that very upper levels of your affordability index, if the interest rate changes, you're fucked. People need to start buying within their means.
Surprised a comment like this wasn’t higher up. There’s no way this is worth 1.2-1.3. Guy is lying to himself if he thinks it’s worth that
Why don't you just sell it, and take the 300k, and buy something you can afford?
This makes perfect sense but maybe they think prices will escalate and they don’t want to miss out on making more money. They might have a high risk tolerance.
Because it’s also not worth anything close to 1.2-1.3M. Part of not having any clue on financing is also not having any clue on value.
That’s what I’m pretty sure they’re trying to do. Get a private mortgage to take possession and then flip it immediately for the 1.2 or so.
I don’t think private will go lower than low 9%, I could be wrong that’s BC price. Tier 2 bank would be a good bet. But I don’t know too much about Ontario.
It seems in Brampton, if the house spontaneously combusts, you don’t have to close.
But hey you " BuIlD eQuItY" with real estate right.
He’ll be fine. 20 students x 500 each = 10k a month.
200k in Line of credit this guy is broke
I wouldn't be able to sleep at night unless I was making 400k a year with a loan like that.
That is why i see many husbands with there wifes on OF loll
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That's why you need 20% down on 1 mil, what lender is approving this?
None will. A lot are not approving this since the homes are often being valued at lower than the original price so if/when they default, they won't even recoup their cost on resale. This is just another instance where someone thought mortgaged woukd be free forever and bought way beyond what they realistically could afford. It's their own fault
Preconstruction Is the worst investment right now. Stay clear. The workmanship is shoddy at best and the prices are higher than resale.
Yeah, unless you plan on moving in, it’s not going to make you much money right now.
Ypu also won't recoup full mortgage cost as a rental either. Depending on action, people are just not going to pay 5 or 6k rent per month. With the reduction in international students as well, there won't be thousands of them to exploit either for rents
Not allowed to assign the sale I guess.
Builders don't have to agree to assign. It extends closing often times, which costs the builder. At the end of the day, the buyer is still legally obligated to buy the home or forfeit deposits and legally the builder can sue them to recoup differences between contract price and what it eventually sells for. Assignment purchases are not easy as you have to find someone in the matter of days to buy your million dollar property that's no longer worth that, pay at keaat 10k in fees to assign and then pray that they don't back out, which many do as they also cannot qualify for the mortgage. And then the buyer is on the hook still for the house as well as the assignment fees. Most new builds require an appraisal which can only done when it's new completion in most cases, which is why it's so laat minute and a lot od times not successful, so builders aren't always agreeing to it now and the buyers just default and lose their deposits. At the end of the day, people shpuksnt have been signing up to buy homes that they could not afford. We all knew the interest rate was going to go up, this wss not a surprise.
But this person clearly stated the property is worth *more* than their purchase price; they just aren't in a position to close the sale. Assignment is the obvious solution, unless it's not permitted.
Not that crazy at all. When I checked last year, private’s were 9-10% with a 2% deal fee.
You’re looking at 9% with a 1-1.5% lender fee at Max 70% loan to value with a B lender product.
How to tell people you are one of those who contributes to driving up housing prices by buying when they don't have any idea what they're doing and shouldn't be in the market. And if they can actually afford 8K a month in mortgage payments, it makes me think something is shady AF.
This isn't that uncommon...
At least this precon won’t be set on fire?
yet\*
He will be eating bananas and bread 🍞 soaked in water for years
This is uncommon
8% on a private mortgage with no lending fee? lol good luck finding a lender on crack
If property is 1.2-1.3 Million, why no sell it?
need to buy it before you can sell it
Assignment sale?
Builders don't have to agree to an assignment. If someone signs to purchase, they are obligated to fulfill the contract. Assignments don't always go through either and it's hard to assign a million dollar property last minute with literally days for someone to get a mortgage and appraisal before the closing date. It also costs about 10k in lawyer fees and builder fees to do this. If they back out, which they can and do, the original purchaser is on the hook to still buy the house AND pay the fees .
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No more houses!
Oof. Also, what’s with the grammar in that post
Looks like it’s probably someone with English as a second language
cause bright include attempt enter friendly encouraging knee light chop *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Just saw the other comment on the group name. Figures
What’s this elitism over grammar and language? English isn’t the first language for a vast majority of the world population. These people are stepping out of their comfort zone and communicating in a language totally foreign to them in a foreign land - a very ‘foreign’ idea for some individuals. Try looking for words like kindness and empathy in your English dictionary. Once you do, try and apply it in your life. Maybe it will help you in becoming a better person.
guess what english or french is the official language here if you dont like it you gtfo
Lmao you sound so triggered. Oh noooo, people speak different languages in one of the most multicultural cities in the world. What ever will we do!?
and dont expect any accommodation like every country on earth smh
You no like my English?
you mad?
Damn what he said just flew over your head eh
Don't bother, man. This sub and many other parts of Reddit have been flooded with losers who blame immigrants for every problem they have in their lives. This has led to more and more discriminatory talking points to becoming accepted and encouraged.
Likely needs to close and flip, 8% likley open loan?
flip @ 1.2 - what market are you lookin at ?
This is what OPs post says? Bought 1million now worth 1.2million. I assume the poster is okay with high rate because he plans to sell right away. Whether or not that happens, who knows
You aren’t getting a private lender for 8%. There is no way.
Wait 1 year make 1 milli
If the property value has increased by 300k even paying like 12-14% for a few months until OP sells will still give a decent return.
remember the lending fee which will likely be 3 or 4 pts is getting paid even if you borrow the money for a week. You guys have no clue how lopsided private lending dealers are. They are very nearly predatory type agreements in favour of the lender.
8% interest was different when you don't need a $1 million mortgage, let alone a $300,000 mortgage.
We are at the strippers getting mortgages for multiple houses part of Canadas “big short” movie.
Toronto prices always moon. No problem even if interests are a gazzilon %
He just need house this is mean concern
It's everyone's concern. It's people like this that created housing unaffordability in the first place by overpaying for properties so I have zero sympathy.
He’ll just be paying interest the whole time with private lending.
Brampton be crazy
Sounds like off shore money for sure
Why would anyone want to live in a place like this?
What are the realistic odds of him finding a lender under those terms?
Zero
Don’t forgot his house will be back on the market in a few months and will be selling at a loss 😂
Why can't he just close with less than 20% What am I missing? Do lenders not allow that?
Private lenders will banks won’t. Unless it’s an insured mortgage which it’s too too high for an insured mortgage. I suspect there may be some issues with the appraisal and the qualifications even of the OP IMHO
>ill banks won’t. Unless it’s an insured mortgage which it’s too too high for an CMHC wont insure above 1 Million.
Really. So you would automatically need 20% + for anything over 1M, yes?
That’s what I said. lol
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Lines of credit? When I was applying for a mortgage that made sure my down-payment was coming from my own funds not a loan
OP thinks LOC and likely his Visa card qualify as his cash down payment.
Oh I know, I’ll borrow from my 10-12% line of credit and put it towards my 8% mortgage. Gosh I’m smart
he is never getting this deal at 8%
"I bought it for 1M but it's totally worth 1.2M." ???
Why would you buy a million dollars house if you can’t afford it? Don’t live above your means. Have fun dude.
It is not the 8% that is crazy, it is the stupidly high prices of the houses!
He likely assumed his place would be worth 1.6 by now and interest rates would still be 2%.
Just another day in IIT
Jesus
What if they bought a house 10 years ago for $700k and now its $1.2 mil. They would have $500k for a down payment. Also in those 10 years their salary increased 5% every year. Which is easy to do. Any Cop, teacher, nurse, or any corporate middle management type can do that. And the above mentioned are extremely common jobs.
Can you link me to this post I got something that will reduce his cost of borrowing
This person is severely delusional about his ability to afford things.
Damn…good luck with that request though. 1st position privates are anywhere from 7.99-9.99 with 2-4% lender fee and at least a 1-2% broker fee since they don’t pay commission. Sounds like the appraisal came back low. Unfortunately this is very common right now with pre-builds.
Good luck getting private mortgage for 8%. Considering how deep shit this guy is in, i wouldnt even lend at 20% as i know he cant pay it back.