It's time to refi

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  • cstmar01
    cstmar01 Posts: 4,424
    edited March 2010
    coolsax wrote: »
    when the mortgage mess was at its highest I saw plently of locks at 1.99% for the initial rate,(pay option arms, ugly ugly loans that should have never seen the light of day) but then when the variable rate kicked in it could of course get much higher. which is a big part of our current messes. People were qualified at the initial rate instead of more conservative avg rate.

    I hate those type of loans. I see so many foreclosures from outside banks that this happened its not even funny.

    better ones are the no income verification ones. Stated income progam. Cust has a high enough credit score they could just say they make 10K a month when they really only make 2 and it would never be checked. HATE just HATE those loans.
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  • shack
    shack Posts: 11,154
    edited March 2010
    How could the OP have been any more clear?
    Just locked the rate in today at 4.5% for 30 years.

    Typical bankers...making things more complicated than they actually are....:rolleyes:
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  • jdwmap
    jdwmap Posts: 116
    edited March 2010
    Everything else aside, make sure you are saving for retirement (min of 10% of your income). After that, I would pay off the house. A mortgage is risk no matter what, if you end up without a job for any amount of time, you can live a lot easier if you don't have a mortgage. Mine will be gone before my oldest daughter goes to high school and it will be one of the best days of my life to pay that last payment. To be under 40 and OWN my house is a hell of a lot better than what the people i grew up with are doing.
    kingtut wrote: »
    Pay extra toward principal vs. put the extra payment toward a Roth IRA.
    Most so-called "experts" recommended putting extra payment toward the Roth IRA. I'm debating which course to take. George Grand and Coolsax, since you both are in the mortg/banking industry, what do you Gentlemen think?
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  • cstmar01
    cstmar01 Posts: 4,424
    edited March 2010
    shack wrote: »
    How could the OP have been any more clear?



    Typical bankers...making things more complicated than they actually are....:rolleyes:

    I'm not a banker, I'm an Asset Recovery Foreclosure Coordinator.
    Man thats a mouth full. :p

    and I'm just saying at our bank that means something different than saying conventional but that is us, and I know not everyone works the same way we do.
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  • coolsax
    coolsax Posts: 1,824
    edited March 2010
    shack wrote: »
    How could the OP have been any more clear?



    Typical bankers...making things more complicated than they actually are....:rolleyes:

    I agree, was just trying to show a difference those who didn't get it. :)
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  • Ron-P
    Ron-P Posts: 8,516
    edited March 2010
    madmax wrote: »
    I was thinking you paid off the mortgage for some reason. Maybe it was just credit cards or something. Congrats on the great rate!
    madmax

    We did, we went without a mortgage for quite a long time. We opened up the HELOC to do major remodeling, landscaping and buy a few toys. The entire house has been remodeled sans a few appliances.

    Because the HELOC has a variable rate and we are done using it I wanted to secure a fixed rate so I decided to flip it into a mortgage. The mortgage rates are just too low not to do this.
    If...
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  • coolsax
    coolsax Posts: 1,824
    edited March 2010
    Ron-P wrote: »
    We did, we went without a mortgage for quite a long time. We opened up the HELOC to do major remodeling, landscaping and buy a few toys. The entire house has been remodeled sans a few appliances.

    Because the HELOC has a variable rate and we are done using it I wanted to secure a fixed rate so I decided to flip it into a mortgage. The mortgage rates are just too low not to do this.

    nice, that is easlier to do in Cali, In texas their HE rules are really messy. While you can turn your HELOC into a Fixed rate loan like you did, it is forever considered a Home Equity loan so those rates will forever be at least a little higher than a normal conventional mortgage. You can never get a normal conventional loan on your homestead property if your first lien is converted into a HE loan per current Texas law.
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  • Ron-P
    Ron-P Posts: 8,516
    edited March 2010
    Ouch, that sucks!
    If...
    Ron dislikes a film = go out and buy it.
    Ron loves a film = don't even rent.
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  • dpowell
    dpowell Posts: 3,067
    edited March 2010
    Congrats on a very nice rate. I was glad to lock in my primary last year at 4.75%.

    For those who think they can't refi, call your current lender and ask if your home qualifies for the "making homes affordable program". I have a rental (former primary residence) that was just enough upside down that we couldn't do a normal refi on it. With the new program, there's no appraisal or income documentation and we were able to lower our rate from 6.875% to 5.5% (this rate was for a non-owner-occupied) for less than $3,000 throuh BofA and they rolled the costs into the loan. Nice program for those who can take advantage of it.
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  • madmax
    madmax Posts: 12,434
    edited March 2010
    Ron-P wrote: »
    We did, we went without a mortgage for quite a long time.

    I thought I remembered that. Welcome back to debt land. :D

    I'm still putting money aside to pay off mine in a few years. I'm afraid to have too much equity in it until it is paid off so I am not putting money towards the principal.
    madmax
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  • Ron-P
    Ron-P Posts: 8,516
    edited March 2010
    Gee, thanks bro :)

    Actually I don't consider a mortgage real debt, that is, as long as you're not up side down on your loan. The 2-story house behind me is on the market for $799k, it's about 800sf bigger then mine so I'm guessing mine should come in at about $600k or so, I'm financing less then 1/3 the value. So, as long as 2012 doesn't happen and CA doesn't slide into the ocean I'll be happy.
    If...
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    Ron loves a film = don't even rent.
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  • madmax
    madmax Posts: 12,434
    edited April 2010
    When I was young our house got paid off early with a lot of hard work. Sure enough, a year later there was a devistating job loss. We weathered it through in that house which wouldn't have been possible with a house payment. That is why I want to pay this thing off or at least have the cash to do so.
    Vinyl, the final frontier...

    Avantgarde horns, 300b tubes, thats the kinda crap I want... :D
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  • Ron-P
    Ron-P Posts: 8,516
    edited April 2010
    I'm right there with ya. I'll be making extra payments to do the same. It was very nice not having a mortgage payment, but, it's nice living in a completely remodeled house. Pros and cons.
    If...
    Ron dislikes a film = go out and buy it.
    Ron loves a film = don't even rent.
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  • woodhead 2
    woodhead 2 Posts: 367
    edited April 2010
    George Grand wrote: »
    Mortgage. Mortgage? I believe I had one of those once.

    Me too!!!!:D
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  • madmax
    madmax Posts: 12,434
    edited April 2010
    Ron-P wrote: »
    I'm right there with ya. I'll be making extra payments to do the same. It was very nice not having a mortgage payment, but, it's nice living in a completely remodeled house. Pros and cons.

    I hear you. Once I have enough cash to pay mine off I will probably take a chunk of it and do the basement and keep paying awhile longer. I'm not sure how much it will cost but at least I know what I want: Huge soundproofed audio room, media storage room, a small stage, a snack room, HT room, bathroom and an office. I thought about doing it upfront and enjoying it for an extra four years but that is a little too risky for me.
    madmax
    Vinyl, the final frontier...

    Avantgarde horns, 300b tubes, thats the kinda crap I want... :D
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  • I-SIG
    I-SIG Posts: 2,238
    edited April 2010
    dpowell wrote: »
    Congrats on a very nice rate. I was glad to lock in my primary last year at 4.75%.

    For those who think they can't refi, call your current lender and ask if your home qualifies for the "making homes affordable program". I have a rental (former primary residence) that was just enough upside down that we couldn't do a normal refi on it. With the new program, there's no appraisal or income documentation and we were able to lower our rate from 6.875% to 5.5% (this rate was for a non-owner-occupied) for less than $3,000 throuh BofA and they rolled the costs into the loan. Nice program for those who can take advantage of it.

    Really? Wow! Maybe I have hope after all. I'm like 25% underwater so if I could get my 6.25% below 5% I'd be thrilled.

    Wes
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