Mortgage delinquencies now at a 21 year high.

[Dinner]

Yes, I have heard this but there is a break on price decreases actually happening. You see it in places like NYC. Namely, that indebted borrowers have it written into their commercial loan agreements from banks that if they rent out commercial space for less than what they wrote in their loan applications then those, highly leveraged loans, have to be recapitalized by the borrower. So the borrower might have to suddenly kick in an extra $500,000 or two million if they rent a place for less than their unrealistic rent estimate. Now, it is also written into the loan agreement that if commercial space is unrentednthan that portion just gets extended on the backend (loan payment period gets automatically added on to the back end) with only minor carry over interest.

In a truly free market prices would have to drop so that landlords get some money instead of no money but with those style loan agreements it is literally cheaper for the landlord to keep a place empty for up to ten years (at the extreme) then to have to suddenly cough up an additional $2 million to the bank because his loans is suddenly under capitalized due to him renting it for less. Eventually, banks won’t be able to just keep floating them and maybe we are reaching that point in places like NYC. It hasn’t happened yet but it did happen in Japan in the 1990’s.

[Dinner]

I recall NYC proposing to change that with a commercial space vancancy tax. That is an interesting idea but wrong. A better way would be to change regulations so that the market starts functioning more freely so that landlords have to start accepting something instead of nothing. I would try to avoid complexity where possible but maybe a vancancy tax could do this.

[Gertrude]

Yes, I have heard this but there is a break on price decreases actually happening. You see it in places like NYC. Namely, that indebted borrowers have it written into their commercial loan agreements from banks that if they rent out commercial space for less than what they wrote in their loan applications then those, highly leveraged loans, have to be recapitalized by the borrower. So the borrower might have to suddenly kick in an extra $500,000 or two million if they rent a place for less than their unrealistic rent estimate. Now, it is also written into the loan agreement that if commercial space is unrentednthan that portion just gets extended on the backend (loan payment period gets automatically added on to the back end) with only minor carry over interest.

In a truly free market prices would have to drop so that landlords get some money instead of no money but with those style loan agreements it is literally cheaper for the landlord to keep a place empty for up to ten years (at the extreme) then to have to suddenly cough up an additional $2 million to the bank because his loans is suddenly under capitalized due to him renting it for less. Eventually, banks won’t be able to just keep floating them and maybe we are reaching that point in places like NYC. It hasn’t happened yet but it did happen in Japan in the 1990’s.

That would have a very unfortunate economic outcome. Rather than commercial rents subsiding to market rates there would be no change in rent for leased space while other space remains vacant. Lower rents would make shops more viable. I do not like the sound of those loan conditions at all.

[Krill]

My understanding is that in the US you generally go for long term fixed (15 or 30 years), whereas you'll get those lower rates for short term fixed. Mine is 5-year though with a $2k cashback on drawdown (so they are paying me to get the loan, madness).

I suggest you try and negotiate. My rate was well below listed price, but being staff I knew exactly what was possible.

How do you even negotiate a mortgage rate? Who do you speak with to start that discussion?

Also, forever home? Congrats all the same.

[Dauphin]

My UK mortgages were generally take or leave rates, but for banks/building societies that are open to negotation, if you don't ask, you don't get. Some banks would cut the rate if you can show a viable competitor mortgage is on offer and you may take it - more so if you are an existing customer.

My Canadian mortgage has a posted price of 4.54% and a 'special discount' price of 2.14%. What the heck that marketing strategy is, I don't know. But at any rate I looked up the rates available to brokers without approval and saw 1.74%. Asked for it, and got it.

My new home is as forever as any place, but its a decent size for central Toronto (2,000 square ft living space - two-storey + finished basement, garage and driveway for two cars and a garden I can mow in about 5 minutes) and so doubt we'll need to move.

[Torlael]

In general, the most important thing in such cases is to analyze well before deciding something because after doing any step you can no longer change anything and the consequences can be both positive and negative. Personally, when I wanted to take out a mortgage, from the beginning I turned to -removed- because I realized that I would not be able to analyze everything on my own and see which is the best option to choose. Instead, with the help of these companies, I managed to take a safe step, which does not make me regret it even now.

[Kidlicious]

All debts are paid.

[Dinner]

Ironically both Ny Gov Cuomo and now Chicago Mayor Lightfoot have said the shutdowns are too harsh and they want to reopen restaurants and most other businesses. Exactly what Republicans did months ago. Most of the red states reopened and did fairly well while blue states like California remained perpetually shutdown and experienced massive outbreaks. Shutdowns don't work because people eventually stop following them and you just end up devastating the economy while having an outbreak anyway.

[Kidlicious]

They're pushing domestic terrorism hysteria now instead of pandemic hysteria so they might open.

[I AM I AM I AM MOBIUS]

it doesn't help matters when democrats are psychotic paranoid delusional dragon ghost fiends making up fantasy realities

https://news.yahoo.com/biden-quietly-met-group-historians-021811222.html

american institutions are a joke
american academics are a joke

pure drama
pure pure drama

those people care more about making sure facebook is still normal

https://news.yahoo.com/facebook-hotbed-child-sexual-abuse-000242710.html

american academics enable the mass distribution of child pornography

they don't care

the universities only care about raping the students with price gouging schemes

https://www.collegian.psu.edu/football/joe-paterno-family-consistently-gave-back-to-penn-state-community/article_0da343c9-4c5b-5dc7-bae0-a530c752728a.html

and covering up because they believe no such person in their status can do wrong

america is a nightmare because of democrats
uppity democrats