Quote:
Originally Posted by DoubleF
If you don't mind me asking, how many years left on your mortgage amortization?
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I have two of those...both renewed last year. I didn't add any extra years to the Amortization or money on either. Primary residence renewed in May, and the Rental was October. Both were amortized to 20 years. I was on variable for the primary residence and went to fixed in May as I could get out of the variable 3 months early penalty free and fix at 4.19 for 5 years. I also did up my payment by 15%. So on this house we are paying an extra $210 biweekly on the original principal. So over 5 years it will add up to 27 and change.
The rental was trickier due to lending options. Renewed it on the same prime-1% rate we had. Hoping that in two years rates might came back down. Unfortunately I could only squeeze for a $75 a month rent increase when the payment went up $460. So right now losing $250 a month on that property. But with a lease I really couldn't list until August, and that's when the market in St. Albert finally came to a halt. Next to nothing has sold since September in that neighborhood. So I think I'm losing less keeping it and waiting for the market to return to more normal conditions. If I listed it snd it was empty for 4 months not selling, I'd be out $10k instead of 1 and in a panic.
Than add in 6% increases in property taxes, insurance for the houses, plus vehicles. Utility bills going up at least that much, and food prices..the money I used to save is now keeping the things I used to have, and not getting saved. If the same cycle of events was to repeat itself in the next 2 years, that terrifies me...not a lot I can do about those costs other than move away from the rental property or downsize my family back to that house. If that happens I have to think it starts to hit a few more folks and really cause problems.