Mortgage advice deja vu

[Ed Anger]

I converted the garage in my 2nd house into a throneroom/entertainment room. Then sold the damn house within two years. whoops. 

Did you take a bath on the resale value of the Throne Room of Doom? 

For myself, I'm planning an addition with a library - carved wood shelves and a central skylight. Even if books become obsolete. 

I was happy to sell the house for about the same as I paid, considering the imploding market.

And carved bookshelves? snob. 

[Grey Fox]

I converted the garage in my 2nd house into a throneroom/entertainment room. Then sold the damn house within two years. whoops. 

Did you take a bath on the resale value of the Throne Room of Doom? 

For myself, I'm planning an addition with a library - carved wood shelves and a central skylight. Even if books become obsolete. 

I was happy to sell the house for about the same as I paid, considering the imploding market.

And carved bookshelves? snob. 

It fits with Malthus's house, actually.

[Malthus]

I was happy to sell the house for about the same as I paid, considering the imploding market.

And carved bookshelves? snob. 

Heh, if having carved bookcases makes me a "snob", what does having a throne of doom make you? 

[Ed Anger]

I was happy to sell the house for about the same as I paid, considering the imploding market.

And carved bookshelves? snob. 

Heh, if having carved bookcases makes me a "snob", what does having a throne of doom make you? 

Thusla Doom.

My child, you have come to me my son. For who now is your father if it is not me? I am the well spring, from which you flow. When I am gone, you will have never been. What would your world be, without me? My son.

[Jacob]

I believe that if you fall below the magic percentage, the bank makes you buy mortgage insurance - a whopping additional fee. Which sucks.

It's not the bank that makes you, it's the government that does so through the CMHC.

[Neil]

I was happy to sell the house for about the same as I paid, considering the imploding market.

And carved bookshelves? snob. 

Heh, if having carved bookcases makes me a "snob", what does having a throne of doom make you? 

Thusla Doom.

My child, you have come to me my son. For who now is your father if it is not me? I am the well spring, from which you flow. When I am gone, you will have never been. What would your world be, without me? My son.

Wrong.  You need a Mountain of Power for that.

[Malthus]

I believe that if you fall below the magic percentage, the bank makes you buy mortgage insurance - a whopping additional fee. Which sucks.

It's not the bank that makes you, it's the government that does so through the CMHC.

Yup, not that it makes any difference - you still have to pay.   

[Barrister]

I believe that if you fall below the magic percentage, the bank makes you buy mortgage insurance - a whopping additional fee. Which sucks.

It's not the bank that makes you, it's the government that does so through the CMHC.

Yup, not that it makes any difference - you still have to pay.   

Thankfully since it's a fixed rate mortgage that can only be an issue when the term expires and it comes up to be re-negotiated.

[The Minsky Moment]

If both folks using a term understand its definition, what's the harm? 

I think (???) the point was that Americans and Canadians use the term differently and thus there is a risk of lack of understanding as between the two nationalities.
What the Canadians call a 5 year fix is analytically similar to an American  5/1 ARM, except without any cap on the upward adjustment of the interest rate (i.e it is actually more variable and risky than the American adjustable product).

[Barrister]

If both folks using a term understand its definition, what's the harm? 

I think (???) the point was that Americans and Canadians use the term differently and thus there is a risk of lack of understanding as between the two nationalities.
What the Canadians call a 5 year fix is analytically similar to an American  5/1 ARM, except without any cap on the upward adjustment of the interest rate (i.e it is actually more variable and risky than the American adjustable product).

Yes, we've established that some time ago.

But what's frustrating is DG 's insistance that the Canadian terminology is 'wrong' or 'misleading'.  It is not. incorrect, it is merely different.

[Ed Anger]

If both folks using a term understand its definition, what's the harm? 

I think (???) the point was that Americans and Canadians use the term differently and thus there is a risk of lack of understanding as between the two nationalities.
What the Canadians call a 5 year fix is analytically similar to an American  5/1 ARM, except without any cap on the upward adjustment of the interest rate (i.e it is actually more variable and risky than the American adjustable product).

Yes, we've established that some time ago.

But what's frustrating is DG 's insistance that the Canadian terminology is 'wrong' or 'misleading'.  It is not. incorrect, it is merely different.

DG assembled dictonaries in a club in college, and knows what he is talking about

[Admiral Yi]

Yes, we've established that some time ago.

But what's frustrating is DG 's insistance that the Canadian terminology is 'wrong' or 'misleading'.  It is not. incorrect, it is merely different.

No, it's wrong or misleading.  If you have a five year fixed mortgage your house is paid off at the end of five years.  And Canadian 25 year mortgages are not fixed for the life of the loan.  DG said exactly what it is: a series of 5 year fixed loans with 25 year amortization.

Or maybe not.  I suppose you could argue that the word "mortgage" is flexible enough to include a loan that doesn't pay off the entire house.

[DGuller]

Finally some reinforcements from the sanity brigade.

"Mortgage" and "fixed rate mortgage" are technical terms, and technical terms should really transcend the borders.  If some countries used "meter" to refer to 1 foot, we would have a big problem, even if everyone in that country knew what they were talking about.

[Barrister]

Yes, we've established that some time ago.

But what's frustrating is DG 's insistance that the Canadian terminology is 'wrong' or 'misleading'.  It is not. incorrect, it is merely different.

No, it's wrong or misleading.  If you have a five year fixed mortgage your house is paid off at the end of five years.  And Canadian 25 year mortgages are not fixed for the life of the loan.  DG said exactly what it is: a series of 5 year fixed loans with 25 year amortization.

Or maybe not.  I suppose you could argue that the word "mortgage" is flexible enough to include a loan that doesn't pay off the entire house.

In canada it would be incomplete to describe it 'only' as a 5 year fixed mortgage.  It would be called a 5 year term, 25 year amortization, mortgage (which is the standard, and is what I have).

And a mortgage is any loan secured against real estate, so it's quite a bit more flexible than you think. 

[Admiral Yi]

In canada it would be incomplete to describe it 'only' as a 5 year fixed mortgage.  It would be called a 5 year term, 25 year amortization, mortgage (which is the standard, and is what I have).

And a mortgage is any loan secured against real estate, so it's quite a bit more flexible than you think.

Then I don't see the problem.  What were you guys arguing about again?