Author Topic: The Home Improvement Thread  (Read 53154 times)

Re: The Home Improvement Thread
« Reply #300 on: January 22, 2021, 05:17:10 pm »
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Starsky

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Re: The Home Improvement Thread
« Reply #301 on: May 05, 2021, 06:46:22 pm »
Digging this up


So a week ago or so my better half who never does stuff like this but lately is showing cracks put in her phone number in some ad on the web about low refi rates and we have gotten like 300 calls


Anyways typically she doesn’t pick up but she has told a few our current rate of 2.62 or some such and they usually say they can’t beat it but “Loan Depot” says they can do 2.25% for ten years (the kind of rate you get on a 15 year) and then you go back to market rate up to 7.2%...

A savings of over $300 a month on what we currently pay

We are not considering this too seriously

Ordinarily I would say GTFO but wanted some thoughts

Yada

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Re: The Home Improvement Thread
« Reply #302 on: May 05, 2021, 07:32:00 pm »
I would call sidefi directly regarding this matter, he is an expert.

Starsky

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Re: The Home Improvement Thread
« Reply #303 on: May 05, 2021, 07:48:46 pm »
Hey man this isn’t his first rodeo!


Listen, anybody’s input is welcome.......even sidefi


And this thread did cause me to get off my ass and tell my partner to get off hers and she got us a lower rate..

Yada

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Re: The Home Improvement Thread
« Reply #304 on: May 05, 2021, 08:25:36 pm »
Anyway, absolutely not worth it.

Save $300 a month for the next decade which is approximately $36,000.

Then in 10 years your rate nearly triples and you lose any money you gained and then some in the following ten years...

Other factors to include are death, moving, etc... but I wouldn't do it.

Re: The Home Improvement Thread
« Reply #305 on: May 05, 2021, 08:47:41 pm »
trust me this hurts....Yada is right

this is also going to hurt, you really missed the boat on the crazy low rates on a 30yr fixed
« Last Edit: May 05, 2021, 08:53:52 pm by FromTheDeskofHatch ıll|̲̅̅●̲̅̅|̲̅̅=̲̅̅|̲̅̅●̲̅̅|llıl »
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Starsky

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Re: The Home Improvement Thread
« Reply #306 on: May 05, 2021, 08:57:32 pm »
But what if you sell at the end of the 10 year or before? You would need to find a new place but both our kids could be gone by then...maybe not

Still you save $36,000..actually more like 40k

We have a very small apartment in DC

Sure we are not planning to move but if you end up moving isn’t that money you gave away?


Not sure what the second part of sidefi financial wizardry post means.. we are happy with our current rate which we didn’t even have to refinance to get... I think it’s quite competitive

No doubt this is a weird offer and maybe the issue is just that $4000 a year just isn’t worth it with the risk one is taking...



« Last Edit: May 05, 2021, 09:15:07 pm by Starsky »

Yada

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Re: The Home Improvement Thread
« Reply #307 on: May 05, 2021, 09:26:58 pm »
Wait... you live in an apartment in DC?

I thought you were an Arlington dweller.

Starsky

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Re: The Home Improvement Thread
« Reply #308 on: May 05, 2021, 09:29:04 pm »
No I do live in a home in Arlington...that’s the mortgage rate in question



My partner owns an apartment in DC she rents

I just meant we do have another property...not like I want to live there
« Last Edit: May 05, 2021, 09:31:43 pm by Starsky »

Yada

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Re: The Home Improvement Thread
« Reply #309 on: May 05, 2021, 09:32:57 pm »
No I do live in a home in Arlington...that’s the mortgage rate in question



My partner owns an apartment in DC she rents

I just meant we do have another property...not like I want to live there

Yeah... keep that place, sell the farm in ten years... or vice-versa.

Starsky

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Re: The Home Improvement Thread
« Reply #310 on: May 05, 2021, 09:54:39 pm »
Ok well I guess we might need a financial planner

Re: The Home Improvement Thread
« Reply #311 on: May 05, 2021, 10:55:38 pm »
I just think a 30 year fixed is the way to go
Or a 15 fixed

10 year balloon payment is just asking for problems
You just have no idea where you’ll be ?
But your payments are going to go up possibly $500 to 1000 a month
Who knows what the market looks like in 2031? What if that’s the year you get laid off and have a big medical expense

It pretty much will put in a position where you have to sell or refi in 10 years


Who the heck knows it like either of those markets (refi or RE) will be in 2031?

And yes you should always try to s Solicit advice  from professionals, you typically get what you pay for.  If it’s too good to be true it probably is

(Although I would have said  2.5% on a 30 yr fixed would have been too good to be true, but for a few brief months it was freely available)
« Last Edit: May 05, 2021, 11:01:13 pm by FromTheDeskofHatch ıll|̲̅̅●̲̅̅|̲̅̅=̲̅̅|̲̅̅●̲̅̅|llıl »
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sweetcell

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Re: The Home Improvement Thread
« Reply #312 on: May 06, 2021, 02:35:36 am »
Anyways typically she doesn’t pick up but she has told a few our current rate of 2.62 or some such and they usually say they can’t beat it but “Loan Depot” says they can do 2.25% for ten years (the kind of rate you get on a 15 year) and then you go back to market rate up to 7.2%...

7.2%???  is that a typo?  because if it isn't, this is a damn scam.


your idea of getting out before that insane rate hits is a decent one, but i'd check the fine print of this offer.  methinks there is something in there to ensure they get you some other way if you cut bait before the big rate hits...
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Re: The Home Improvement Thread
« Reply #313 on: May 06, 2021, 07:50:02 am »
but i'd check the fine print of this offer.  methinks there is something in there to ensure they get you some other way if you cut bait before the big rate hits...
I'm no expert, but those type of loans don't really exist anymore.  Not sure if they made a law against it, but 'typically' there is no prepayment penalty on mortgages.  (I'm sure they exist still, but are rare)

They get you because most people think they are going to be smart and avoid the ballon, but then life happened and you are like 'Oh shit my payments just went up $700 and rates are at 5.5 now"

But you should always read the fine print on the terms of the loan.  By law there is a one-pager that details all the components of the loan.
Definitely try to understand the closing costs, there are certain things the lender has no impact on (VA transfer tax is a fun line item), but many others you can shop around (Title co, title insurance) and save close to $1000 on closing

IMO, get a lender who will do in-home closings.  Going to a title company office and spending 2 hours is a real pain, but at your kitchen table isn't that bad.  But I will add there is one big risk is the person closing
the person doing the closing is pretty much a fancy notary, so don't expect them to know all the answers on the documents.  But most of them are legally required, so it's not like you don't have an option not to sign them to get the loan

I really don't like balloon payments, risk is so high and you are not saving 'that much'
only way they work is you 100% plan to flip/sell the house in a short period of time and you just want the lowest payment you can get for a few years
« Last Edit: May 06, 2021, 07:51:34 am by FromTheDeskofHatch ıll|̲̅̅●̲̅̅|̲̅̅=̲̅̅|̲̅̅●̲̅̅|llıl »
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Yada

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Re: The Home Improvement Thread
« Reply #314 on: May 06, 2021, 09:22:50 am »
Also, for god's sake work with a real bank... not the "loan depot."

That should be red flags right there.