Mortgage rates

[FireFoley]

Interesting take. I PM’d Concrete in the beginning and he gave the same advice: dont pay anything extra and invest it.

It technically dropped the payment $420 per month.

A big part of me doesn’t like extending it out another 15 years, especially when 11.5 years is easily achievable. It’s really peanuts in interest saved, but I was thinking more about “time”.

FWIW I was NOT giving you that advice. The nice rate comment was genuine and the story about people cash out refi-ing was true. I would never advise anyone NOT to pay the house off asap, unless there was some tax/other benefit not to. Extending duration just to lower the monthly payment is, to be kind, fool's gold. you end up paying much more over time.

 

[BMF]

Yeah, I know what it is. They also asked for a utility bill. I am like, “it’s all electronic now…. I havent received a bill in the mail in 8 years”. Well we need one. And then after everything is approved and rolling nicely, they said they know I have been paid again and they also need that paystub. It just never ended. Nothing hard to get, it just got annoying. I honestly thought it might not close. And considering this wasn’t a huge savings for me…. I reached the limit of my annoyed meter. But, everything was signed today so all is good. (As long as it is funded)

I just closed last month and had the same experience. I told my mortgage guy that "this is borderline harassment!". I have an 800+ credit score, I put 42% down payment, had no outstanding debt except the current mortgage (and had to write a letter saying I intended to sell the current house), etc. I had to provide pay stubs up until the closing date, bank statements, etc. They made me get on a phone call w/ Chase to verify a credit card that had a zero balance. It was a pain in the ass. I told my wife, "we should have just paid cash!"

 

[bradgator2]

I just closed last month and had the same experience. I told my mortgage guy that "this is borderline harassment!". I have an 800+ credit score, I put 42% down payment, had no outstanding debt except the current mortgage (and had to write a letter saying I intended to sell the current house), etc. I had to provide pay stubs up until the closing date, bank statements, etc. They made me get on a phone call w/ Chase to verify a credit card that had a zero balance. It was a pain in the ass. I told my wife, "we should have just paid cash!"

Ha. Exactly the same here. It just seemed like it never ended.

 

[bradgator2]

FWIW I was NOT giving you that advice. The nice rate comment was genuine and the story about people cash out refi-ing was true. I would never advise anyone NOT to pay the house off asap, unless there was some tax/other benefit not to. Extending duration just to lower the monthly payment is, to be kind, fool's gold. you end up paying much more over time.

Oh, I didn’t take it as advice advice. But it was the 2nd time someone made that comment (although one was in private). I find (almost) every post in here interesting.

 

[alcoholica]

Part of the issue with home mortgages (commercial too) is that the loan officers have become salesmen. Meaning half the time they don't care to collect everything they need up front. It's difficult for underwriters and processors to give a rat's ass, when they have to pick up a file for the 5th time. The other issue is that there are a lot of new underwriters and processors on the consumer side. So where a seasoned underwriter may have the experience to know how to massage a file and get it through, a new one does not.

 

[bradgator2]

I have a question. On it's surface, this shouldnt be a complicated question. I have refi'd a bunch of times during my life. There is always a cost and I have always tried to be very cognizant of when is the refi "worth it" or where the "break even" spot is.

In the past, I have always rolled the closing costs into the new mortgage. So in my head, the "break even" point was when the existing mortgage balance and the new refi mortgage balance would be equal.

However this time, I paid the closing costs at closing. So the existing mortgage and refi mortgage are the exact same balance on Day Zero. So when is break even?

Is the break even spot the day that my closing costs equals the amount of interest I saved due to the refi?

Another words, amortize my existing mortgage and amortize my new refi mortgage. At what spot in the future does my new interest + closing costs = existing interest?

 

[bradgator2]

I figured it out. Had to put it into a spreadsheet and simply compare things month by month.

 

[BMF]

I have a question. On it's surface, this shouldnt be a complicated question. I have refi'd a bunch of times during my life. There is always a cost and I have always tried to be very cognizant of when is the refi "worth it" or where the "break even" spot is.

In the past, I have always rolled the closing costs into the new mortgage. So in my head, the "break even" point was when the existing mortgage balance and the new refi mortgage balance would be equal.

However this time, I paid the closing costs at closing. So the existing mortgage and refi mortgage are the exact same balance on Day Zero. So when is break even?

Is the break even spot the day that my closing costs equals the amount of interest I saved due to the refi?

Another words, amortize my existing mortgage and amortize my new refi mortgage. At what spot in the future does my new interest + closing costs = existing interest?

My 2 cents on a refi is to pay the closing costs up front. My wife has a ton of stupid friends (she's 10 years younger than me, so I see them making mistakes I made in my younger years or just doing stupid things that stupid people do)....and several of them do refi's anytime they can get a better rate, and they always include the closing costs into the new mortgage. I tell my wife, "that's how poor people stay poor". I've done it before - because (a) I didn't know better and (b) I wasn't in a great financial position. I refi'd my current house (that is under contract) during the 2nd year I owned it - I got a better rate and took out about $30K that I used to finish building the cabin. The new Gulfport house is 2.375% 30 year on $250k. My plan is to either pay it off quickly (10-15 years) or turn it into a rental and take my time paying it off.

 

[BMF]

 

[CDGator]

About freaking time

 

[FireFoley]

When can these landlords start tossing these free loaders out?

so I was thinking the other day what a country we live in. the GOV'T sends all these people money in an emergency situation and originally I understood it. Use these funds for necessities: food, rent, utilities, etc, etc. then you read a survey where over 60% of younger people used the money in some type of financial market (don't think that was the intended purpose). On top of that there was money set aside strictly for "Rental Assistance". But the lessees had to apply not the landlord. Okay great I get it. but here was the thing that irked me. Even if you do not apply for the rental assistance it is okay b/c we will not let them evict you. How can people making decisions in gov't be that stoopid. Here is money we want to give you. But if you don;t take it no worries, you can still stay!

 

[FireFoley]

Democrats press Pelosi, Schumer to revive eviction ban

 

[Concrete Helmet]

Democrats press Pelosi, Schumer to revive eviction ban

I can certainly understand why these 2 would want to keep it in place....NY and Cali(SF in particular) are going to be f vcked by homelessness and their property values are going to take another hit when broken assed landlords try and dump their places ASAP...This time it ain't working...also if this money was set aside for landlords then they should still be able to get it in their hands.

 

[soflagator]

Seemed appropriate.

 

[alcoholica]

Seemed appropriate.

Completely forgot she died. Little solace given what's transpired recently

 

[BMF]

Seemed appropriate.

Somebody should pass this along to General Milley for his "white rage" study.

 

[soflagator]

Completely forgot she died. Little solace given what's transpired recently

Somebody should pass this along to General Milley for his "white rage" study.

Every time I hear one of these SC decisions, I’m reminded of her and envision her drive home being very similar to this one.

 

[alcoholica]

Every time I hear one of these SC decisions, I’m reminded of her and envision her drive home being very similar to this one.

Only Barrett and the rapist are voting with the cocktuckers more often than they should

 

[BMF]

100,000 free houses thanks to the US government!

White House unveils plan to produce 100,000 affordable homes

The White House announced plans Wednesday to make available nearly 100,000 affordable homes over the next three years, in an effort to tackle a housing supply shortage that has contributed to skyrocketing home prices.

 

[CGgater]

100,000 free houses thanks to the US government!

White House unveils plan to produce 100,000 affordable homes

The White House announced plans Wednesday to make available nearly 100,000 affordable homes over the next three years, in an effort to tackle a housing supply shortage that has contributed to skyrocketing home prices.

I wonder who is gonna pay for it?