T1B

...are insane. I just locked a 30-year re-fi at 4.75%. Just an FYI.

Nice.

You pay any points? Other fees?

I waiting for a 4.5% no cost loan to come around and I'll pull the trigger.

Mikey wrote:Nice.

You pay any points? Other fees?

I waiting for a 4.5% no cost loan to come around and I'll pull the trigger.

No points, probably a shade over a grand in closing fees.

Goober McTuber wrote:I just locked a 30-year re-fi

So you're going to have a mortgage payment when you're 85? Apparently, you consider your house payment rent money.

Goober McTuber wrote:

Mikey wrote:Nice.

You pay any points? Other fees?

I waiting for a 4.5% no cost loan to come around and I'll pull the trigger.

No points, probably a shade over a grand in closing fees.

You got 4.75 on a 30 with no points? And only a grand in fees? What was your old rate? I'd say you got over pretty well. Or did you blow your banker?

I've got about 9 years left on the 4.625 15 year I took out a while back. rack me.

War Wagon wrote:

Goober McTuber wrote:I just locked a 30-year re-fi

So you're going to have a mortgage payment when you're 85? Apparently, you consider your house payment rent money.

not what I would do, but, if he is investing the jack he saves by stretching out his mortgage, it is not neccessarily a dumb thing to do.

My cardboard box is mortgage free.


Rack me!

Goober McTuber wrote:...are insane. I just locked a 30-year re-fi at 4.75%. Just an FYI.

Weird - http://www.guidetolenders.com/secure-re ... result.jsp

30 yr. lower than a 15 in rate and points?

Mayber it''s beacuse there's currently 0 yeild on T-Bills

War Wagon wrote:

Goober McTuber wrote:I just locked a 30-year re-fi

So you're going to have a mortgage payment when you're 85? Apparently, you consider your house payment rent money.

My wife decided she wanted to quit her job and go back to school to become a nurse. I took out a second mortgage so she could go full-time the first year. I just consolidated everything at 4.75 %. I took the 30-year to keep the payments down while she’s still in school (part-time). When she finishes and starts making $60,000 a year, I can step up the payments and pay it off in 15.

I see where she's coming from, Gobbles. In this economy, the tips at Scores-Madison just aren't as big as they used to be.

Rack your wife for stepping up ! Back in the 80's I told my own kids then-- HEALTH SERVICES would be where the jobs are--
my older daughter got into the nursing part. She's now going back for her Master's so she can teach it. Edison State College in Fort Myers where I work as a science lab technician, they are breaking ground on a new Nursing School ! I told my daughter to get down here fast !

Screw_Michigan wrote:I see where she's coming from, Gobbles. In this economy, the tips at Scores-Madison just aren't as big as they used to be.

But rack my wife for being hot enough to work as a stripper when she was pushing 50.

Funny thing is my current mortgage company has sent me a couple of re-fi offers themselves. I have never seen a company offer to let me pay them less for the same good. However, I guess they are trying to hold onto our mortgage thinking we could re-fi elsewhere. Like Mikey I am holding out for their best offer. Will prolly stay with them though because they offered up to three months of no payments after Ike. We didn't take the offer, but nice to know it was there. Ford did the same thing with our note on the Navigator, but Chevy didn't on the other one. Guess Chevy has no heart and needed the money very badly.

One other feature of the mortgage I am getting: it will not be sold off. The local bank will always hold it.

All well and good until the local bank is purchased and then that new bank merges with someother bank and next thing you know you are in the boa family.

I put 60% down on the current home when I bought a few months ago and got a HELOC at prime. 3.25% now is pretty sweet. Will probably keep it at prime for another 6 months and then get a fixed.

We're locked in at 5.5% which started off on a ramp deal with the first year being 3.5 and the second year being 4.5 leaving the remaing 28 years at 5.5. The first three years we were just paying the note on a monthly basis. We now pay half our note every two weeks which comes to making one extra a year meaning we could pay the thing off in 25 years as opposed to 30. If I get a new job, we'll probably refinance for 15 in a couple of years....that is if the rates are fair.

The local bank will always hold it.

How did you work that deal ? First of all, a lot of "local banks" end up devoured by larger ones, secondly banks are pretty much free to sell your mortgage to whomever. I wish you well, but you never know. Our first home had an original 25 year loan with a local savings and loan, and ended up being passed on to at least three other institutions before we paid it off.

One of the terms of the mortgage is that it will not be sold to another bank. They also offer mortgages that can be sold, usually for .05 % or .1 % less on the rate. Right now the rates are actually a full point higher for the mortgages that can be sold off, probably because they’ll have a harder time finding buyers right now.

Yes, there is the possibility of the bank being bought up, but that hasn’t happened to them since they first went into business in 1935, so I’ll take my chances. My experience up here in God’s Country is that the local and regional banks seldom change hands. Not sure why.

Does this work like a no-trade clause?

Can you give them a list of banks you'd be willing to be traded to?

Who gives a rat's ass who holds the paper? Just so long as your terms don't change, I don't care if the fukkin' easterbunny buys the loan.

I just wish the gubmint would get out of the business of buying really shitty ones.

Checked with Countrywide Friday - they have the original mortgage on my main house and had sent me one of their Re-Fi spam come ons.

A 15 yr at 4.5% which is fine - except they also wanted the following:

Inside Fees : $1,200 (loan app, etc.)
Outside Fees: $1,300 (apraisal, etc.)
1.875 pts: $4,500

So $7000 total to drop a point which ends up at 5 yr break even -

Going to be shopping around - anyone see anything better?

I did a Lending Tree request (which took two weeks to get some offers) and got an offer from Cendera Funding for a 15 year at 4.625%, 1.00 points and no origination fee. Other than that, Lending Tree was a waste of time. I also have inquiries into US Bank (which had a 4.375% 15 year but that boat appears to have sailed) and Wells Fargo. USAA has good rates if you're a member, although their closing costs are a bit harsh.

I'll call the Cendera folks on Monday to feel them out as I've never heard of them. I googled them and didn't see any deregatory info on the net about them.

KC Scott wrote:Checked with Countrywide Friday - they have the original mortgage on my main house and had sent me one of their Re-Fi spam come ons.

A 15 yr at 4.5% which is fine - except they also wanted the following:

Inside Fees : $1,200 (loan app, etc.)
Outside Fees: $1,300 (apraisal, etc.)
1.875 pts: $4,500

So $7000 total to drop a point which ends up at 5 yr break even -

Going to be shopping around - anyone see anything better?

Don't you you have a local bank you can do business with? Everyone I know who has a mortgage with Countrywide or any other national bank could not get decent terms on a re-fi. Local banks had much better terms.

KC Scott wrote:Checked with Countrywide Friday - they have the original mortgage on my main house...

Main house?

As opposed to what? Houses in Independence or Sugar Creek?

Countrywide owns my ass too, one month after my last re-fi in 2004.

Reading between the lines, don't feel so bad.

My Bank is a National Bank also and they hold the note on my rental house (which was my main house before we bought this one)

It is a good idea though - I may call some local banks and see what they offer.

There's a part of me that just says write a check and pay off the main house, but I still think there should be better returns for my Money down the road than 4.5% + the partial write off of the interest on taxes

I'm all for paid off mortgages, scott, but, I think you might be right. Kep your powder dry and hope the real estate market shits itself a little more, then maybe look at adding to your slumloard empire. I am considering getting into this game myself. The next town over has some 2-3 family houses that might have some fairly decent positive cashflow in them if I can steal them sometime this year or maybe next.

smackaholic wrote:I am considering getting into this game myself. The next town over has some 2-3 family houses that might have some fairly decent positive cashflow in them if I can steal them sometime this year or maybe next.

Two points -

1. Do you have the 20% down - beacuse the days of carrying back a second are over - risk exposure will be absolute minimum. Kind of a sub point to this is if you do have the 20% what's your time fram for holding the property?

The math would be a $150,000 house = $30,000 down. If you're in good shape for 15 years (Which would be the ideal term for the loan) then it should be a pretty solid investment. If you're going to try and turn it in 5 years though, most of the rents will be going to interest and it may be more of a break even proposition unless we see a major appreciation swing start (and that's a minimum of two years from starting IMO)

2. The Rent - what can you get per month? In my old house I'm getting $1,300 which on the 5.5% note I put on it covered the principle, taxes and insurance - for the first year. Then we had a property tax reassesment and I'm now operating at about $1,100 per year deficit. Sucks, but I have a solid family in there and haven't wanted to rock the boat and jack it up / risk losing them.

Good luck -

Don't have the down payment in cash, but, have plenty of equity in my house that I could draw from. I think I was the only dude in the country these past 5 years that didn't suck all the equity out of his pad to buy a boat or other frivoulous shit. It was hard last month to finally use 5K of it to replace the minivan my daughter racked up.

If I did get into one, it would be for the long haul and a 15 year or less mortgage. I like the idea of having a few paid off rental properties by the time I hit retirement age.

As for your situation with your tenants, I think you are wise to do what you are doing. I played the landlord roll on my house in CT while I lived in TN for three years. I had a shit tennant, then a solid tennant. Solid tennants are way funner. Less than 100 dollars a month in negative cashflow is probably cancelled out by equity gains over the long haul.

Goober McTuber wrote:Don't you you have a local bank you can do business with? Everyone I know who has a mortgage with Countrywide or any other national bank could not get decent terms on a re-fi. Local banks had much better terms.

I got a mortgage with a good fixed rate from a local bank. But since they don't service their own loans, I send my payments to (you guessed it) Countrywide. Honestly I have yet to have a problem with them. They have a nice website that tells me everything I need to know about my mortgage and my obligations. I pay in advance and put extra towards principal every month. They may suck as a loan originator, but as a loan server they are just fine.

BSmack wrote:...I send my payments to...

Wrong thread, Bri.

BSmack wrote:

Goober McTuber wrote:Don't you you have a local bank you can do business with? Everyone I know who has a mortgage with Countrywide or any other national bank could not get decent terms on a re-fi. Local banks had much better terms.

I got a mortgage with a good fixed rate from a local bank. But since they don't service their own loans, I send my payments to (you guessed it) Countrywide. Honestly I have yet to have a problem with them. They have a nice website that tells me everything I need to know about my mortgage and my obligations. I pay in advance and put extra towards principal every month. They may suck as a loan originator, but as a loan server they are just fine.

The discussion was about the inability to refinance with Countrywide at a lower rate.

And RACK M-Perk.