The Mortgage Market Is So Bad Lenders Want Ex-Employees to Give Back Their Bonuses (conspiracy, state)

[Listener2307]

Originally Posted by JenaS62

Some people are not as fortunate as you. You can advocate for it all you want but many people are not in the position to pay off their mortgage early. Some people are barely able to pay their mortgage payment at all.

I feel as though there are a lot of not in touch with main street people posting here. Stuff happens. Don't judge.

If you cannot pay it off early, pay it off in 15 years.
30 year mortgages are usually unwise and unnecessary.

[Listener2307]

Originally Posted by Ohiogirl81

I'm in this boat right now - I'd love to sell my single-family home and purchase a condo (I'm done with yard work!). With 12 years left on my current mortgage, I could pay the balance off right now from my bank account, but why would I unless I absolutely had to when my current rate 3.65%?

Not as easy as all that. You gotta be able to pay off the mortgage first. And then find a property that doesn't cost more than what you've raised selling your current home.

And I'll bet that the majority of them were not purchased with cash by people like you and me, but by corporations.

I hear ya.
Don't know about you, but most people who have 12 years left on their mortgage started with 30 years. And that's a mistake. The difference in payment between 15 years and 30 years is not all that much. The 15 year mortgage should almost always be used.
What people do (don't know about you) is tell themselves they will invest the difference and make XX% on their investments. I just think that's a mistake. People just spend the money.


Going back to your first statement:
If you could pay it off with cash, why can't you buy the condo you want with cash+equity?..... Kinda confusing.

[Threerun]

Originally Posted by Listener2307

I'd try not to. But a contract is a contract, so I may be forced to return it.


Bummer, for those involved. My stepdaughter is a well established mortgage broker in the Memphis area. She just sailed through the 08 crisis because her area was hot. But now.... She has never seen it like this. Prices on high-end property are falling. Recovery from loss may take many years for those who bought in the last two years.

If someone bought a home in an overheated market then, well.... Caveat Emptor.

[JenaS62]

Originally Posted by Listener2307

If you cannot pay it off early, pay it off in 15 years.
30 year mortgages are usually unwise and unnecessary.

I had a 15 year mortgage but when Covid hit and my company lost 85% of their revenue (travel industry) and fearing that I would lose my job, we refinanced to a 30 year /lower interest rate to get a lower payment. Such is life.

[Mathguy]

Originally Posted by blameyourself

You're welcome to disagree all you want. But the numbers are the numbers.

For now, your scenario holds.

Where that changes is if you have the economy cool, jobs tighten and people have to move for work.

That being said, the remote work environment may make that less impactful than it was during the last big correction.

All that being said, it's a dark cloud for potential buyers that still face a tough market but with higher interest rates. Oh well.

[SWFL_Native]

The hookers and coke were gone months ago.

[Listener2307]

Originally Posted by JenaS62

I had a 15 year mortgage but when Covid hit and my company lost 85% of their revenue (travel industry) and fearing that I would lose my job, we refinanced to a 30 year /lower interest rate to get a lower payment. Such is life.

Glad you were able to come up with a plan!
But sorry for your trouble.
I have been financially clobbered a few times. All we can do is forge ahead, making shiny new plans to replace the tarnished old ones.


BOL!

[mattja]

If they fired someone for cause one month before the cutoff date for the return of the bonus, that's one thing.

But if they have a policy of firing everyone one before the cutoff date, isn't that fraud?

[Chowhound]

Originally Posted by JenaS62

I had a 15 year mortgage but when Covid hit and my company lost 85% of their revenue (travel industry) and fearing that I would lose my job, we refinanced to a 30 year /lower interest rate to get a lower payment. Such is life.

You got to do what you got to do.

In retrospect I wished we had done the 15 yr thing, maybe even 20, but I wanted to keep the monthly nut as low as we could for some breathing room and I also wanted to be able to contribute to my 401k.

I'm going to see if I can find some mortgage calculators online to see how much more I can contribute within a 10 yr period to see if we can pay it off.

[Mathguy]

Originally Posted by mattja

If they fired someone for cause one month before the cutoff date for the return of the bonus, that's one thing.

But if they have a policy of firing everyone one before the cutoff date, isn't that fraud?

That would be for the courts to sort out and a hard look at how the contracts were written, state law etc.

That being said, they surely set fire to their reputation re: signing bonuses.

Since the information coming in is one-sided, we may not be getting the whole story and there may be vesting etc. so that he may not have to give back all of it.