Imminent Housing Crash

[pheoxs]

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Oh Jesus.... more like they owe YOU...

So here is the thing about IRDs...

When an IRD is calculated they use the current rate for the term closest matching the remainder of your term at the time you cancel... so if you have a 5yr fixed, want to break it 2yrs in. That lender offers a 3yr term. That’s the rate they use. Not a huge deal with the monolines.... but with the banks... oh those banks... they usually have a “special” 5yr rate so when they compare a rate for an IRD they of course use the “posted” rates... those are all readily available on each bank’s website and are much higher

So it goes something like this...

Signed for 3.19 with scotia in a special 5yr, have 2yr left, 2yr is at 3.74, your good right? Scotia gets more $$$ to relend the funds you don’t want anymore... Nope! Cause 5yr posted at the time was actually 5.19 so IRD is 1.45 for 24 months

And yes that’s actually how it works... I did this with scotia on a $400k balance with 3yra left and it was a $15k penalty

Oh, and it’s ALWAYS the greater of, not less... always

Yup. Here's the current rates TD is advertising. Notice the special offers and then a slew of trash rates:

[01RedDX]

.

[sabad66]

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Oh Jesus.... more like they owe YOU...

So here is the thing about IRDs...

When an IRD is calculated they use the current rate for the term closest matching the remainder of your term at the time you cancel... so if you have a 5yr fixed, want to break it 2yrs in. That lender offers a 3yr term. That’s the rate they use. Not a huge deal with the monolines.... but with the banks... oh those banks... they usually have a “special” 5yr rate so when they compare a rate for an IRD they of course use the “posted” rates... those are all readily available on each bank’s website and are much higher

So it goes something like this...

Signed for 3.19 with scotia in a special 5yr, have 2yr left, 2yr is at 3.74, your good right? Scotia gets more $$$ to relend the funds you don’t want anymore... Nope! Cause 5yr posted at the time was actually 5.19 so IRD is 1.45 for 24 months

And yes that’s actually how it works... I did this with scotia on a $400k balance with 3yra left and it was a $15k penalty

Oh, and it’s ALWAYS the greater of, not less... always

thanks for the example. I've never spent a lot of time trying to figure it out the IRD calculation.

and yes my experience from talking to 3 brokers over the years is all penalties are always the GREATER of the two, not the lower.

[suntan]

These were good times.

[88CRX]

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These were good times.

Hope people bought the dip.

[killramos]

HODl!!!1i!!1!1

[riander5]

What the hell did sugarphreak do that he had to go delete every post he ever made

[Xtrema]

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What the hell did sugarphreak do that he had to go delete every post he ever made

Rumor is he got dox'ed by kiddies when he went back to school out in BC.

But who knows.

[ExtraSlow]

I heard he fucked a goat. and you know the saying, not even once . . .

[vengie]

I heard someone fucked his dad due in large part to his posts here, so to save his dad he went back and deleted everything...

Just a rumor though.

[CompletelyNumb]

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I heard he fucked a goat. and you know the saying, not even once . . .

A man can build a thousand bridges but if he fucks one goat, they don't call him the bridge builder.

[riander5]

The theories on sugarphreaks departure help distract me from the fact that I did not buy the dip

[ianmcc]

Pics of goat?

[Swank]

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Pics of goat?

The pics are as imminent as the housing crash, get comfy.

[Rocket1k78]

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What the hell did sugarphreak do that he had to go delete every post he ever made

He deleted every single one? definitely odd