- Joined
- Aug 22, 2008
- Messages
- 428
QUOTE (thomasbeyer2000 @ Jan 7 2009, 08:11 PM) why pay less ?
That`s what a lot of our American friends thought, too. Why pay less? With a lower "introductory" interest rate, we can get an even bigger mortgage! Yay!
And then when the variable rate catches up to the market, suddenly we don`t have any disposable income left after our mortgage payments. Shucks. Oh, and then when real estate values decline, we suddenly owe more on a house than it`s worth, and we can`t afford to make the monthly payments. A winning combination, to be sure. You mean that our home can no longer be our personal ATM, financing our 50" plasma`s and `09 Bimmer`s by refinancing? Well, that sucks!
VRM`s were a big factor in the U.S.`s mess; let`s just hope that it hasn`t artificially inflated Canadian home values in a similar fashion.
That`s what a lot of our American friends thought, too. Why pay less? With a lower "introductory" interest rate, we can get an even bigger mortgage! Yay!
And then when the variable rate catches up to the market, suddenly we don`t have any disposable income left after our mortgage payments. Shucks. Oh, and then when real estate values decline, we suddenly owe more on a house than it`s worth, and we can`t afford to make the monthly payments. A winning combination, to be sure. You mean that our home can no longer be our personal ATM, financing our 50" plasma`s and `09 Bimmer`s by refinancing? Well, that sucks!
VRM`s were a big factor in the U.S.`s mess; let`s just hope that it hasn`t artificially inflated Canadian home values in a similar fashion.