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[QUOTE=Draz;14199159]Yeah but quality of life is far more important. I took public transportation for over 16 years and finally purchased a nice decent car. I'll never go back.
Buying quality is vital. Buying what makes you happy is important.
These people are miserable fcks[/QUOTE]
It's a fine line...a hard thing to balance
You have to live for today, but also save for tomorrow.
If you only do one of those it is bad... have to do both.
Just started refinancing today, second time this year... the change from my previous CD shows i'd save nearly 120/month which was worth it.
I locked in a 360month at 2.5 and 0 points with current lender -- with no appraisal needed this was a no brainer.
[QUOTE=rawimpact;14199349]Just started refinancing today, second time this year... the change from my previous CD shows i'd save nearly 120/month which was worth it.
I locked in a 360month at 2.5 and 0 points with current lender -- with no appraisal needed this was a no brainer.[/QUOTE]
How about the fees? How long is payback period?
Why don't you try to switch to a 15yr loan? You can save lots of money in the long run.
[QUOTE=bladefd;14199441]How about the fees? How long is payback period?
Why don't you try to switch to a 15yr loan? You can save lots of money in the long run.[/QUOTE]
0 Fees, lender credits 1,000 towards attorney, settlement, closing protection letter, endorsement fees etc.
Why would I want to give up my cash for a loan with such low interest level? That sounds like a horrible decision. If anything, Id pull cash from the equity to use it for investment.
Besides, the difference between 2.0 (Rate I'd prob get for 15 year) and 2.5 is nothing. Mortgages rarely have prepayment penalties anymore
[QUOTE=rawimpact;14199461]0 Fees, lender credits 1,000 towards attorney, settlement, closing protection letter, endorsement fees etc.
Why would I want to give up my cash for a loan with such low interest level? That sounds like a horrible decision. If anything, Id pull cash from the equity to use it for investment.
Besides, the difference between 2.0 (Rate I'd prob get for 15 year) and 2.5 is nothing. Mortgages rarely have prepayment penalties anymore[/QUOTE]
15 years would save money in interest if you can afford it. Interest adds up over 30yrs.
1k credit, but how much are those fees? You said you already refinanced this year so you should calculate payback period to see if you paid back your savings from first refi. Now you are starting 2nd refi.
You should also go through a credit union instead of a mortgage lender or bank imo. You typically get more benefits. I didn't know about credit unions until recently tbh.
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[QUOTE=bladefd;14199470]15 years would save money in interest if you can afford it. Interest adds up over 30yrs.
1k credit, but how much are those fees? You said you already refinanced this year so you should calculate payback period to see if you paid back your savings from first refi. Now you are starting 2nd refi.
You should also go through a credit union instead of a mortgage lender or bank imo. You typically get more benefits. I didn't know about credit unions until recently tbh.[/QUOTE]
0 fees, means my first month I recoup my closing close, not sure what you’re missing. My rate is my APR. credit unions cannot offer you what your current lender does, like I said, credits and no appraisal cost.
my investments yield me more than 2.5% why on earth would I put more towards my mortgage? My financial advisor has already said even with my previous rate that at 3.25 it’s not worth making extra payments. Put it towards investments that yield significantly more.
[QUOTE=rawimpact;14199606]0 fees, means my first month I recoup my closing close, not sure what you’re missing. My rate is my APR. credit unions cannot offer you what your current lender does, like I said, credits and no appraisal cost.
my investments yield me more than 2.5% why on earth would I put more towards my mortgage? My financial advisor has already said even with my previous rate that at 3.25 it’s not worth making extra payments. Put it towards investments that yield significantly more.[/QUOTE]
Yes you are paying regular payment + closing cost in first month, but closing costs are usually ~2k excluding appraisal. You still have to consider payback period, which is closing divided by monthly savings to see when you break even. Like if it cost you 2k to close and save $200/m, your break even period would be in 10 months even if you pay 10 months in single lump sum.
Credits are looped in through your interest rate. Credits = you paying slightly more in rate. If you go with points, you will have slightly lower rate. For long-term 30yrs refi, points are worth it imo.
Why 15yr period? Because you want to get out of debt as soon as possible. I'm not a fan of being in debt until retirement if you can get out of it early (15yrs earlier in this case). Chances are we will never have rates this low again if you ever want to refi in the future. Why not finish your mortgage payments in 15yrs at 2% interest than finish in 30yrs at 2.5%? There is the comfort in knowing your debts are out of the way in early 50s rather than let it keep rolling till 65. Just my opinion.
[IMG]https://i.ibb.co/pnPwbP2/interest.jpg[/IMG]
That's a big difference in interest paid to mortgage lender (300k random number but you get the point)..
[QUOTE=bladefd;14199687]Yes you are paying regular payment + closing cost in first month, but closing costs are usually ~2k excluding appraisal. You still have to consider payback period, which is closing divided by monthly savings to see when you break even. Like if it cost you 2k to close and save $200/m, your break even period would be in 10 months even if you pay 10 months in single lump sum.
Credits are looped in through your interest rate. Credits = you paying slightly more in rate. If you go with points, you will have slightly lower rate. For long-term 30yrs refi, points are worth it imo.
Why 15yr period? Because you want to get out of debt as soon as possible. I'm not a fan of being in debt until retirement if you can get out of it early (15yrs earlier in this case). Chances are we will never have rates this low again if you ever want to refi in the future. Why not finish your mortgage payments in 15yrs at 2% interest than finish in 30yrs at 2.5%? There is the comfort in knowing your debts are out of the way in early 50s rather than let it keep rolling till 65. Just my opinion.
[IMG]https://i.ibb.co/pnPwbP2/interest.jpg[/IMG]
That's a big difference in interest paid to mortgage lender (300k random number but you get the point)..[/QUOTE]
Are you hard headed blade?
I literally just told you I have a 0 closing cost because my lender is providing credits to stick with them. The only thing I have to pay is the interest that accumulates for one month during underwriting (a month I skip payment during transition). Otherwise, my mortgage payment just straight drops with the same principle amount owed.
Secondly, Paying extra 0.5% for 15 years is a huge waste. My current annual yield on my investment (although skewed because of this year, but even if I exclude this year) is 12%.
Why would i throw money into my mortgage to save 0.5% compounded daily, versus throwing money into my investments that yield me 12% annual (or ~10% compounded daily)?
A mortgage is a good debt, not a bad one. Retaining it is to my tax benefit.
Literally the worst advice I have heard anyone tell anyone
Here is my itemized fee worksheet page 2
[IMG]https://i.ibb.co/pK9SPm8/image.png[/IMG]
literally ALL of my closing costs are credited by the lender. NO ONE outside of your current lender will recoup lawyer, title etc. fees, that's including credit unions. Sorry for the shitty image, I screenshotted the second page from the email as a 'google preview'
EDIT: I should also add, I would highly recommend Andy Newman from Go Mortgage (GSF Mortgage) as their home loan advisor/officer. This guy has literally told me to look elsewhere when he could not offer a better price.
[QUOTE=rawimpact;14199844]Here is my itemized fee worksheet page 2
[IMG]https://i.ibb.co/pK9SPm8/image.png[/IMG]
literally ALL of my closing costs are credited by the lender. NO ONE outside of your current lender will recoup lawyer, title etc. fees, that's including credit unions. Sorry for the shitty image, I screenshotted the second page from the email as a 'google preview'
EDIT: I should also add, I would highly recommend Andy Newman from Go Mortgage (GSF Mortgage) as their home loan advisor/officer. This guy has literally told me to look elsewhere when he could not offer a better price.[/QUOTE]
And that's without points & without any down payment? It doesn't seem like you have an escrow either.
Trust me when I tell you, but it doesn't usually go the way it did for you. It most likely went well for you because you have 30yr mortgage. They will profit much more money over 30yrs than say if you were trying to refi a 15yr mortgage or even refi into a 10yr refi.
I tried to refinance for my parents house by staying with same company couple days back and they tried to screw us over. They (mr.cooper) quoted 2% interest rate until I asked for closing fees breakdown. They ran up the meter on closing fees. I forgot to ask for APR, but APR must have been at least 2.8 or higher :lol . He was talking about how we have to pay nothing upfront because they would include it all in the refi. Then we noticed the total amount being refinanced was much higher because he had overall borrowed sum being 40k higher over full loan term - it was most likely including points & small percent of down payment (he even wanted 6 months worth of taxes for escrow upfront - federal requirement is not 6 months like he kept trying to claim). They were making a killing over closing fees even with appraisal waived. My dad asked him for full amount including p+i over full mortgage term. It was about 40k extra compared to doing nothing so ofc they make every penny back and more. Ended up turning it down.
He then tried to sell us into 15yrs refi to bring down the closing fees, but I shot it down. I figured out his gameplan. If we went into 15yrs by tacking on extra years, yes closing goes down significantly & so does the monthly bill, but they make every penny back in interest with multiple extra years tacked on.
Now looking at non-profit credit unions like PenFed. They don't have origination fee, but unfortunately their rate goes up. I don't see it being worth it. I think we missed out on refi after December 1 Freddie Mac mortgage fee was tacked on. Drove up APR by 0.5% across the board, either in closing fee or being looped back into p+i. I knew the 0.5% fee was coming since mid-October, but my dad didn't feel like going through the hassle of refinancing, even though I was willing to help him with everything to save his bill. Now we have to consider the extra 0.5% fee wherever we go. It's probably too late but might as well try a credit union.. Got nothing to lose. If anything, we keep what we have
[QUOTE=rawimpact;14199842]Are you hard headed blade?
I literally just told you I have a 0 closing cost because my lender is providing credits to stick with them. The only thing I have to pay is the interest that accumulates for one month during underwriting (a month I skip payment during transition). Otherwise, my mortgage payment just straight drops with the same principle amount owed.
[B]Secondly, Paying extra 0.5% for 15 years is a huge waste. My current annual yield on my investment (although skewed because of this year, but even if I exclude this year) is 12%.[/B]
Why would i throw money into my mortgage to save 0.5% compounded daily, versus throwing money into my investments that yield me 12% annual (or ~10% compounded daily)?
A mortgage is a good debt, not a bad one. Retaining it is to my tax benefit.
Literally the worst advice I have heard anyone tell anyone[/QUOTE]
:roll:
exactly. op·por·tu·ni·ty cost
[QUOTE=bladefd;14200427]And that's without points & without any down payment? It doesn't seem like you have an escrow either.
Trust me when I tell you, but it doesn't usually go the way it did for you. It most likely went well for you because you have 30yr mortgage. They will profit much more money over 30yrs than say if you were trying to refi a 15yr mortgage or even refi into a 10yr refi.
I tried to refinance for my parents house by staying with same company couple days back and they tried to screw us over. They (mr.cooper) quoted 2% interest rate until I asked for closing fees breakdown. They ran up the meter on closing fees. I forgot to ask for APR, but APR must have been at least 2.8 or higher :lol . He was talking about how we have to pay nothing upfront because they would include it all in the refi. Then we noticed the total amount being refinanced was much higher because he had overall borrowed sum being 40k higher over full loan term - it was most likely including points & small percent of down payment (he even wanted 6 months worth of taxes for escrow upfront - federal requirement is not 6 months like he kept trying to claim). They were making a killing over closing fees even with appraisal waived. My dad asked him for full amount including p+i over full mortgage term. It was about 40k extra compared to doing nothing so ofc they make every penny back and more. Ended up turning it down.
He then tried to sell us into 15yrs refi to bring down the closing fees, but I shot it down. I figured out his gameplan. If we went into 15yrs by tacking on extra years, yes closing goes down significantly & so does the monthly bill, but they make every penny back in interest with multiple extra years tacked on.
Now looking at non-profit credit unions like PenFed. They don't have origination fee, but unfortunately their rate goes up. I don't see it being worth it. I think we missed out on refi after December 1 Freddie Mac mortgage fee was tacked on. Drove up APR by 0.5% across the board, either in closing fee or being looped back into p+i. I knew the 0.5% fee was coming since mid-October, but my dad didn't feel like going through the hassle of refinancing, even though I was willing to help him with everything to save his bill. Now we have to consider the extra 0.5% fee wherever we go. It's probably too late but might as well try a credit union.. Got nothing to lose. If anything, we keep what we have[/QUOTE]
Okay, I've come to the conclusion it's impossible to even have a discussion with you. What I provided you is a LOCKED rate. For the third time 0 FEES, meaning 0 POINTS. The rate cannot change because it is the agreed upon amount (Do you not see the lender lock fee in the image?). I don't care about your parents experience because it sounds like you didn't do you research. I've worked with this lender since day 1. Refinanced with them earlier this year so I have complete trust. I'd show you my previous fee worksheet as well when i refinanced to 3.25 but you'll just come up with some random example of how this is a bad choice.
If you're telling people they should double up on their home principle to save 0.5% interest you really need to stop giving financial advice. The rate at 2.5% is just barely over inflation.
BTW, I have everything in my escrow account (with exception to mortgage insurance because I have well over 20% in equity), my home insurance and my required hail and wind because my home is on the beach.
[QUOTE=rawimpact;14200533]Okay, I've come to the conclusion it's impossible to even have a discussion with you. What I provided you is a LOCKED rate. For the third time 0 FEES, meaning 0 POINTS. The rate cannot change because it is the agreed upon amount (Do you not see the lender lock fee in the image?). I don't care about your parents experience because it sounds like you didn't do you research. I've worked with this lender since day 1. Refinanced with them earlier this year so I have complete trust. I'd show you my previous fee worksheet as well when i refinanced to 3.25 but you'll just come up with some random example of how this is a bad choice.
If you're telling people they should double up on their home principle to save 0.5% interest you really need to stop giving financial advice. The rate at 2.5% is just barely over inflation.
BTW, I have everything in my escrow account (with exception to mortgage insurance because I have well over 20% in equity), my home insurance and my required hail and wind because my home is on the beach.[/QUOTE]
Yes I know it's locked. Fees and points are usually considered separate - fees are required while points are not. That is why I asked if you had any points or if you had to pay anything in down payment.
If you read my post, I wasn't talking about saving 0.5% annually, which is a drop in the bucket, but rather about paying 1/3 the interest over life of the loan, which is actually a huge sum, once you look at compound interest and having the benefit of owning your home in 15yrs. You don't know what kind of situation you will be in 20yrs with job/income/disability/alimony/etc. I like the idea of owning your home in half the time then you can focus 100% of your money on stock market once you own your home.
I'm also not saying you should stop investing for 15yrs. Do both. You will end up paying 1/3 the interest on loan life, which depending on your house & area could be at least hundred thousand or more. Keep putting money into your 401k and keep putting money each month, just 600-700 less.
Of course it's possible you build up your stock holding first then pay off in single lump sum to buy off the remaining balance of your mortgage in 10-15yrs. It all depends on your annual income, how much risk you are willing to take, and if you will in fact ever be willing to take money out of your stocks to pay off mortgage in single lump sum in 15 or so years to save on interest. I don't know the numbers, but I would estimate that if you do a single lump sum in a time inside 15yrs, you will probably pay as much in interest as if you had a 15yr mortgage in the first place.
You probably noticed by now I'm not a fan of paying more in interest than you really have to. Don't fund the loan people in interest money if you can avoid it, and I also like the idea of having peace of mind the day you stop paying to live in your own home. You have the peace of knowing you 100% own your home. You don't know what kind of situation you will face or god forbid some major health issue, which usually tends to happen when you get into your 50s. Nothing is guaranteed in life - not your health, not your job/income, not the stock market - so I believe one should approach life similarly.
AirBnB now public
opened at $68 looks like...it's already at $145
I'm going to let the dust settle on this before I consider