What to do with mortgage/home payments

[ee2k]

In a shit state that the current economy is in, what does one do when it comes to mortgage/property with the assumption that income and employment is stable (for now
- status quo, continue paying mortgage as prescribed
- if have extra money, double up on mortgage payments to accelerate
- if have extra money, do lump sum payments to pay down mortgage

The question/concern is around how shitty AB's recession will be, and the effect on property values. If I intend to accelerate payment, is it paying down a property that's going to be worth a lot less, and instead, my money should go somewhere else?

Those of you doubling up payments, are you reconsidering this and reverting to single payments to preserve cash?

[The BMW Guy]

Liquidity is king so I would not be locking up cash during this time, especially with low mortgage rates (if on variable).

[dirtsniffer]

I thought about putting the mortgage savings back into the mortgage, but I'm saving all cash right now.

[Dynasty 88]

No doubt we’re going to see a huge correction in real estate. My Dad is in the commercial side and he figures it might be bad as back in the 80’s.

I was told as well, liquidity is a good thing these days. Definitely holding off on our plans to upgrade.

[ExtraSlow]

any spare money buy PPL (or other volatile stock)

[Masked Bandit]

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In a shit state that the current economy is in, what does one do when it comes to mortgage/property with the assumption that income and employment is stable (for now
- status quo, continue paying mortgage as prescribed
- if have extra money, double up on mortgage payments to accelerate
- if have extra money, do lump sum payments to pay down mortgage

The question/concern is around how shitty AB's recession will be, and the effect on property values. If I intend to accelerate payment, is it paying down a property that's going to be worth a lot less, and instead, my money should go somewhere else?

Those of you doubling up payments, are you reconsidering this and reverting to single payments to preserve cash?

Assuming you already own a property, a dive in the market isn't really relevant. You owe a bank a fixed number of dollars regardless of what your house is worth so the longer that debt is outstanding the more you'll pay in interest. Unless it gets to the point where you're willing to declare bankruptcy and walk away the fluctuations in the market value shouldn't really come into play. You don't own a house, you own a mortgage.

Now, with that said I would keep a fatter than usual cash reserve at this time because A) there's almost no certainty in the job market in Alberta for the next 0-12 months and B) you may decide to acquire other assets if their values are still down, IE stocks. My personal strategy would be to build cash and when things stabilize either lump sum the mortgage or buy other assets.

[ee2k]

Thanks guys. I’m on a variable rate which has made the cost of borrowing so low as of late. I will maintain liquidity and not lock it up in mortgage. I will heed to the advice of doing lump payments when things stabilize.

[bjstare]

Take all the extra cash you have and start putting it in market index etfs.

[revelations]

^ yea this.

With some rates heading down to 0%, the cost of borrowing to invest in this economic dump is coming down rapidly.

[Pacman]

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Take all the extra cash you have and start putting it in market index etfs.

Which are the good ones these days?

[revelations]

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Which are the good ones these days?

One that tracks SPY or DOW should be fine.

[phreezee]

#1 vfv

[ercchry]

If you think it’s really going to shit, max refinance now (you need a good excuse for them to write you a cheque for over ~$100k) this does two things, as liquid as possible and moves the loan to an uninsurable product... welcome to Alberta, only place with no recourse mortgages (can’t be insured, lender cannot go after any other asset than the house)

..once it’s sufficiently underwater, purchase new home (cause you sure as shit won’t get a new mortgage after this next move) and then mail in your keys (aka jingle mail for anyone that remembers the 80s)

[bjstare]

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Which are the good ones these days?

VFV (cad S&P 500)
QQQ (USD Nasdaq)

[suntan]

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any spare money use that money to get a giant loan and buy ppl (or other volatile stock)

ftfy

[revelations]

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If you think it’s really going to shit, max refinance now (you need a good excuse for them to write you a cheque for over ~$100k) this does two things, as liquid as possible and moves the loan to an uninsurable product... welcome to Alberta, only place with no recourse mortgages (can’t be insured, lender cannot go after any other asset than the house)

..once it’s sufficiently underwater, purchase new home (cause you sure as shit won’t get a new mortgage after this next move) and then mail in your keys (aka jingle mail for anyone that remembers the 80s)

Its not quite as simple as that. You would need a non-CHMC mortgage (20% down or greater) on the house to get this.

[ercchry]

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Its not quite as simple as that. You would need a non-CHMC mortgage (20% down or greater) on the house to get this.

...okay then, forgot you’re the expert. Fuck me for talking on what I do for my day job... you MUST know what you’re talking about! Like yeah, refinances are insurable now cause the fucking almighty revelations says so! Jesssssuuusss boys! 95% LTV refinances for all! Double meat subs for this guy! Thanks revelations!

[revelations]

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...okay then, forgot you’re the expert. Fuck me for talking on what I do for my day job... you MUST know what you’re talking about! Like yeah, refinances are insurable now cause the fucking almighty revelations says so! Jesssssuuusss boys! 95% LTV refinances for all! Double meat subs for this guy! Thanks revelations!

Yea one day when we grow up we can have a civilized conversation. Not today.

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"welcome to Alberta, only place with no recourse mortgages (can’t be insured, lender cannot go after any other asset than the house" ........ was what you pointed out explicitely.

What you SHOULD have said is:

"welcome to Alberta, only place with no recourse, REFINANCED mortgages"

--------------------------------------------

Your immaturity aside, it is an interesting idea though.

[roopi]

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...okay then, forgot you’re the expert. Fuck me for talking on what I do for my day job... you MUST know what you’re talking about! Like yeah, refinances are insurable now cause the fucking almighty revelations says so! Jesssssuuusss boys! 95% LTV refinances for all! Double meat subs for this guy! Thanks revelations!

Having a rough day?

[lasimmon]

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...okay then, forgot you’re the expert. Fuck me for talking on what I do for my day job... you MUST know what you’re talking about! Like yeah, refinances are insurable now cause the fucking almighty revelations says so! Jesssssuuusss boys! 95% LTV refinances for all! Double meat subs for this guy! Thanks revelations!

Welcome to oil and gas. Where everyone has done something once and is now an expert.