Mortgage rates

Discussion in 'Business, Investing & Finance' started by Zambo, Jul 3, 2019.

  1. FireFoley

    FireFoley Senior Member
    Lifetime Member

    Joined:
    Nov 19, 2014
    Messages:
    6,071
    Oxbucks:
    $6,526
    Ratings:
    +9,405 / -461
    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

      BMF Bad Mother....
      Lifetime Member

      Joined:
      Sep 8, 2014
      Messages:
      20,639
      Oxbucks:
      $28,630
      Ratings:
      +41,267 / -580
      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

        bradgator2 Rioting
        Lifetime Member

        Joined:
        Jun 12, 2014
        Messages:
        8,068
        Oxbucks:
        $8,112
        Ratings:
        +18,073 / -141
        Ha. Exactly the same here. It just seemed like it never ended.
         
        #843 bradgator2, Aug 17, 2021
        Last edited: Aug 17, 2021
      • bradgator2

        bradgator2 Rioting
        Lifetime Member

        Joined:
        Jun 12, 2014
        Messages:
        8,068
        Oxbucks:
        $8,112
        Ratings:
        +18,073 / -141
        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

        alcoholica I'm what Willis was talking about
        Lifetime Member

        Joined:
        Jun 11, 2014
        Messages:
        15,938
        Oxbucks:
        $9,165
        Ratings:
        +18,549 / -809
        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

          bradgator2 Rioting
          Lifetime Member

          Joined:
          Jun 12, 2014
          Messages:
          8,068
          Oxbucks:
          $8,112
          Ratings:
          +18,073 / -141
          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

          bradgator2 Rioting
          Lifetime Member

          Joined:
          Jun 12, 2014
          Messages:
          8,068
          Oxbucks:
          $8,112
          Ratings:
          +18,073 / -141
          I figured it out. Had to put it into a spreadsheet and simply compare things month by month.
           
          #847 bradgator2, Aug 17, 2021
          Last edited: Aug 17, 2021
        • BMF

          BMF Bad Mother....
          Lifetime Member

          Joined:
          Sep 8, 2014
          Messages:
          20,639
          Oxbucks:
          $28,630
          Ratings:
          +41,267 / -580
          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

            BMF Bad Mother....
            Lifetime Member

            Joined:
            Sep 8, 2014
            Messages:
            20,639
            Oxbucks:
            $28,630
            Ratings:
            +41,267 / -580
             
            • CDGator

              CDGator Well-Known Member
              Lifetime Member

              Joined:
              Jul 24, 2020
              Messages:
              7,043
              Oxbucks:
              $11,064
              Ratings:
              +17,672 / -193
              About freaking time
               
              • FireFoley

                FireFoley Senior Member
                Lifetime Member

                Joined:
                Nov 19, 2014
                Messages:
                6,071
                Oxbucks:
                $6,526
                Ratings:
                +9,405 / -461
                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

                  FireFoley Senior Member
                  Lifetime Member

                  Joined:
                  Nov 19, 2014
                  Messages:
                  6,071
                  Oxbucks:
                  $6,526
                  Ratings:
                  +9,405 / -461
                • Concrete Helmet

                  Concrete Helmet Hook, Line, and Sinker
                  Lifetime Member

                  Joined:
                  Jul 29, 2014
                  Messages:
                  16,551
                  Oxbucks:
                  $10,209
                  Ratings:
                  +16,658 / -1,248
                  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

                  soflagator Senior Member
                  Lifetime Member

                  Joined:
                  Sep 4, 2014
                  Messages:
                  13,192
                  Oxbucks:
                  $27,095
                  Ratings:
                  +45,389 / -481
                  Seemed appropriate.

                   
                  • alcoholica

                    alcoholica I'm what Willis was talking about
                    Lifetime Member

                    Joined:
                    Jun 11, 2014
                    Messages:
                    15,938
                    Oxbucks:
                    $9,165
                    Ratings:
                    +18,549 / -809
                    Completely forgot she died. Little solace given what's transpired recently
                     
                  • BMF

                    BMF Bad Mother....
                    Lifetime Member

                    Joined:
                    Sep 8, 2014
                    Messages:
                    20,639
                    Oxbucks:
                    $28,630
                    Ratings:
                    +41,267 / -580
                    Somebody should pass this along to General Milley for his "white rage" study.
                     
                  • soflagator

                    soflagator Senior Member
                    Lifetime Member

                    Joined:
                    Sep 4, 2014
                    Messages:
                    13,192
                    Oxbucks:
                    $27,095
                    Ratings:
                    +45,389 / -481
                    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

                      alcoholica I'm what Willis was talking about
                      Lifetime Member

                      Joined:
                      Jun 11, 2014
                      Messages:
                      15,938
                      Oxbucks:
                      $9,165
                      Ratings:
                      +18,549 / -809
                      Only Barrett and the rapist are voting with the cocktuckers more often than they should
                       
                    • BMF

                      BMF Bad Mother....
                      Lifetime Member

                      Joined:
                      Sep 8, 2014
                      Messages:
                      20,639
                      Oxbucks:
                      $28,630
                      Ratings:
                      +41,267 / -580
                      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

                      CGgater Gainesville Native
                      Lifetime Member

                      Joined:
                      Jul 30, 2014
                      Messages:
                      8,626
                      Oxbucks:
                      $9,576
                      Ratings:
                      +13,084 / -217
                      I wonder who is gonna pay for it?
                       

                      Share This Page

                      The Box

                      Help

                      You don't have the necessary permissions to use the chat.

                        1. There are currently no users chatting.
                          • About Us

                            Our community sprung up when the Gatorsports message board was shut down in the summer of 2014. We pride ourselves on offering Gator-biased, yet critical discussion among people of all different backgrounds. We are working every day to make sure our community is the best Gator message board you will find.
                          • Like us on Facebook

                          • Buy us a Zima!

                            The management works very hard to make sure the community is running the best software, best designs, and all the other bells and whistles. Care to buy us a non-alcoholic Zima? We'd really appreciate it! Just click the "Donate" tab at the top of the page.