Posted on 04/15/2020 7:14:25 AM PDT by littleharbour
I got a 15 year mortgage at 2.75% 9 years ago. My social security payment each month more than covers the mortgage payment.
And they can’t wait...
Hey, MBS here! Get your mortgage-backed securities here!
I agree completely. My province has a total of 116 infections. About a dozen who were hospitalized, and no fatalities. But we are on almost total lockdown.
The restrictions are arbitrary and illogical. The government liquor stores are open, where anyone can get inside and touch multiple products. Same with pharmacies and large hardware chains (including Home Depot and Canadian Tire), and grocers. Walwart and Costco are open in all departments, because they happen to also sell food, but have now been given an effective monopoly on the sale of clothing.
There is absolutely no need for clothing, furniture and car dealerships to be shuttered, along with many other retail businesses that do not require personal contact. Reasonable sanitary precautions would be sufficient. If some person I don’t know can cook food, give it to another person I don’t know for delivery, who takes it in a vehicle that is not monitored for cleanliness, and deliver it to my building, why can’t I get a haircut by a barber wearing a mask and gloves? Because the barber is not working for a multi-national fast food corporation. Our bailouts are helping big corporations who are still operational, and strangling the privately owned small business sector.
How does paying off the mortgage in this situation help you out? Seems like you’d be better off keeping the cash.
I missed the bottom by an 1/8 %.
I bought my current house 9 years ago.
Got a 15 year fixed rate mortgage from DCU credit union.
2.375% no points. I missed 2.25% by about a week. Just lucky timing.
>
Has there ever been a country in history that has committed economic suicide on such a scale as ours? I doubt it.
>
Well, to be fair, there’s only ever BEEN our inalienable Rights, small/limited govt Const. Republic in History.
Though, PLENTY of examples of failed Socialism+ and esp. failed fiat monetary policy (which is antithesis to the aforementioned Constitution. But we haven’t been a Const. Republic for some moons now anyway...)
No outstanding debt reduces anyones claims to what I possess. I don’t pretend to know what might happen with the economy, but I am into minimizing any exposures I have within my power, and I did....
> banks will be flooded with them in Sept
Yep. Take a 3 month deferral, lump sum due, collapse, and then another couple of months to foreclose/short sale/evict.
whats the fallout for the mortgagee?......
Who knows what reclamation powers and/or tools a lender might be given if the economy collapses? Personally, I don't want to find out by being on the receiving end of that...
“No outstanding debt reduces anyones claims to what I possess. I don’t pretend to know what might happen with the economy, but I am into minimizing any exposures I have within my power, and I did....”
If that’s what gives you peace of mind, that’s fine.
But in these situations cash is king. Just about all other assets are going down in value relative to it.
And yes a mortgage is a claim on your house, but whatever cash you hold is also a claim on anything you may want to buy.
And yes a mortgage is a claim on your house, but whatever cash you hold is also a claim on anything you may want to buy."
Let's see what happens with cash as well, short-term as well as long-term. I am not putting all my eggs in one basket, figuratively and literally...!
Oh wow so sorry to hear that. I had a girlfriend who’s husband got severely burned was out of work and fell behind on house payments and they offered her a forebearance payment of spreading the past due amount over three amounts to her normal payment. Like if her payment was 500 a month, she would spread the 1500 for past due over three months. Her payment would be 1,000 for 3 months as example.
I have a fear there will be lot of foreclosures in next 6 months for some folks.
“Let’s see what happens with cash as well, short-term as well as long-term. I am not putting all my eggs in one basket, figuratively and literally...!”
Absolutely. Diversification is the key to maintaining the value of your nest egg. And just because cash is king today doesn’t mean it will be a year or two from now.
Now is the time to use some of that cash (not all of it by any means) to buy assets that have been crushed, but that you believe will bounce back.
You don’t even need to be a stock picker, just buy the whole market, liky SPY or QQQ. They’ve been beaten down and are guaranteed to come back and not go bankrupt.
Better yet buy some calls on them.
Economic suicide started when the USA decided to de industrialize 30 years ago.
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