Mortgage thoughts?
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Mortgage thoughts? (by BillW [NJ]) Nov 17, 2020 2:13 PM
       Mortgage thoughts? (by Nicole [PA]) Nov 18, 2020 12:48 AM
       Mortgage thoughts? (by JB [OR]) Nov 18, 2020 2:16 AM
       Mortgage thoughts? (by Steve [MA]) Nov 18, 2020 6:14 AM
       Mortgage thoughts? (by nhsailmaker [NH]) Nov 18, 2020 8:32 AM
       Mortgage thoughts? (by Ray-N-Pa [PA]) Nov 18, 2020 8:59 AM
       Mortgage thoughts? (by Ray-N-Pa [PA]) Nov 18, 2020 9:00 AM
       Mortgage thoughts? (by S i d [MO]) Nov 18, 2020 9:27 AM
       Mortgage thoughts? (by Frank [NJ]) Nov 18, 2020 9:27 AM
       Mortgage thoughts? (by BillW [NJ]) Nov 18, 2020 9:30 AM
       Mortgage thoughts? (by Frank [NJ]) Nov 18, 2020 9:48 AM
       Mortgage thoughts? (by Smokowna [MD]) Nov 18, 2020 10:15 AM
       Mortgage thoughts? (by Smokowna [MD]) Nov 18, 2020 10:16 AM
       Mortgage thoughts? (by Jim in O C [CA]) Nov 18, 2020 11:04 AM
       Mortgage thoughts? (by BillW [NJ]) Nov 18, 2020 12:40 PM
       Mortgage thoughts? (by Ray-N-Pa [PA]) Nov 18, 2020 12:56 PM
       Mortgage thoughts? (by BillW [NJ]) Nov 18, 2020 1:38 PM
       Mortgage thoughts? (by nhsailmaker [NH]) Nov 19, 2020 8:15 AM
       Mortgage thoughts? (by BillW [NJ]) Nov 19, 2020 10:12 AM

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Mortgage thoughts? (by BillW [NJ]) Posted on: Nov 17, 2020 2:13 PM
Message:

I have 22 years left on my home mortgage, at 3.875%. I owe $262k. Payments: $1496, $649 principal, and $847 interest.

Allied Mortgage has a 20-year loan with “zero” cost, 2.875%, giving a $1436 payment ($60 less) with the first payment of $809 principal ($160 more) and $627 interest ($220 less). I’m going to live here at least 5 more years. Our credit score is 750.

I have 3 loans on rental properties with similar amounts and years left, at 4.25%

Should I pursue re-financing at my house and/or rentals? I suspect the loans aren’t really “zero cost” or perhaps you need an 830-credit score to get that.

What do you think? Any banks you like? Thanks, Bill

PS: thanks to those who helped on "Maintenance you regret" post. I got my system (on excel) running and happily checked off dryer ducts cleaned today:-)

--71.187.xxx.xx




Mortgage thoughts? (by Nicole [PA]) Posted on: Nov 18, 2020 12:48 AM
Message:

sometimes "no cost" means lender costs - you still pay for title insurance, appraisal, title work, closing, etc.

I didn't run an amort schedule but on first glance, it certainly seems like a no brainer and I'd guess you'd be saving in the $50,000 range in interest. --72.70.xxx.xxx




Mortgage thoughts? (by JB [OR]) Posted on: Nov 18, 2020 2:16 AM
Message:

4.25 on non-owner occupied properties is a great deal. I don't think you are going to beat that without spending a whole lot on loan fees. I wouldn't.

But the offer for your primary sounds good. --73.25.xx.xxx




Mortgage thoughts? (by Steve [MA]) Posted on: Nov 18, 2020 6:14 AM
Message:

I would leave your rental loans alone & get more info on refinancing your personal home. If it turns out that it's really pretty close to a " zero" cost loan including the closing, I'd go for it. Since you've managed to pay $1,496 each month, I'd continue to pay that & possibly a bit more to pay it off even faster. Personally I to get loans for the lowest rate for the longest time then pay extra each month. This allows me to whittle down the balance when I have a bit of extra cash but not have to worry about doing it if I'm not able to. --71.174.xxx.xx




Mortgage thoughts? (by nhsailmaker [NH]) Posted on: Nov 18, 2020 8:32 AM
Message:

I suggest you PAY for a financial planner to do a proper "report card" on where you are and where you are going and how to get there

Besides their financial analysis they also have great contacts for financial services

We mom and pop landlords tend to run by the seat of our pants and generally dont ever reach our potential --73.61.xx.xx




Mortgage thoughts? (by Ray-N-Pa [PA]) Posted on: Nov 18, 2020 8:59 AM
Message:

Normally the spread to consider a refi is just over 1%. You are right there. So it depends largely on the cost of the refi. Nicole is spot on with assessment about what no cost means.

It is much easier to recast a commercial loan than a residential owner occupied loan.

I'll find you a link to a series of financial calculators that will allow you to run your own analysis. It looks like you will be losing two year of payments, but that is with that pay back being in 2040

--24.101.xxx.xx




Mortgage thoughts? (by Ray-N-Pa [PA]) Posted on: Nov 18, 2020 9:00 AM
Message:

Links to multiple Calculators

hughcalc.org/index.php

--24.101.xxx.xx




Mortgage thoughts? (by S i d [MO]) Posted on: Nov 18, 2020 9:27 AM
Message:

Ask your lender for a Good Faith Estimate of Closing costs. If you plan on living there 5 more years, be sure that is enough savings to recoup your costs. For the hassle factor, I'd want to come out at least $1000 ahead for my troubles after 3 years of savings on the lower interest rate payment, since plans do change and sometimes we move sooner than expected.

You'll see quickly on the GFE if it's truly "zero cost". I'm suspicious, but I suppose it is possible they are being proactive and trying to keep you as a customer vs. you running over somewhere else and finding a lower rate to refi at. --107.216.xxx.xxx




Mortgage thoughts? (by Frank [NJ]) Posted on: Nov 18, 2020 9:27 AM
Message:

Do not forget local Credit unions. Following advice given here over the years, we went to one here for a ZHELOC some months back when other banks locked down for a bit. It went well.

Too, rates for a 15 test are very low, so you might for well now.

Good luck --174.225.xxx.xxx




Mortgage thoughts? (by BillW [NJ]) Posted on: Nov 18, 2020 9:30 AM
Message:

Thanks Nicole. Great info. I see the APR can be the same as the rate (zero cost), and like you said, you still pay for title insurance, appraisal, title work, and other stuff. Seems like I need to come up with an estimate of those costs to do an analysis.

Thanks JB, 4.25 does sound good .

Yes, that’s the question isn’t it Steve; how close to “zero” cost is it.

Your right nhsailmaker, about paying for a financial planner, I don’t know what I don’t know and the responses to this post make me realize my limited knowledge. I don’t know anyone who uses one and I’m afraid the planner’s interests don’t align with mine. Like what do you do, look at their Yelp ratings?

Thanks Ray-N-Pa, But it seems the calculators are simplified and tell you your reduction in payment, but the ratio of principal and interest payments looks important. But like I said to nhsailmaker, I don’t know. --71.187.xxx.xx




Mortgage thoughts? (by Frank [NJ]) Posted on: Nov 18, 2020 9:48 AM
Message:

Ugh! Fat fingers.'HELOC' and '15 year'. --174.225.xxx.xxx




Mortgage thoughts? (by Smokowna [MD]) Posted on: Nov 18, 2020 10:15 AM
Message:

I would not pass up the oppertunity to speak with a lender. Lets assume you are a good customer for them....if you bring them four loans....the work is in the first one, after that the papers are already filled out so-to-speak.

Lately a credit union seemed to be most responsive.

I get a barrage of offers from Mr. Cooper (Geez sales sales sales - however once you speak with one of their officers they seem nice)

And Rocket mortgage was recommended but I have had no dealings with them.

My best guess is that rates will continue to stay low and I hope they go down to two.

*Beware,. I make additional payments on my mortgage. One lender said that my actual interest rate is lower due to those payments. I found this as an interesting method of making me feel like my loan was good enough as it was. Still, a refinance would be better. --108.28.xx.xxx




Mortgage thoughts? (by Smokowna [MD]) Posted on: Nov 18, 2020 10:16 AM
Message:

I wanted to add that you are a good customer, and with more loan business they may see you as a great customer.

--108.28.xx.xxx




Mortgage thoughts? (by Jim in O C [CA]) Posted on: Nov 18, 2020 11:04 AM
Message:

I just did a refi for 2.5% interest, 15 year loan and my payment went up $50 a month . Interest was 4.375 %. Total cost $3000 including all the escrow and title fees. --174.195.xxx.x




Mortgage thoughts? (by BillW [NJ]) Posted on: Nov 18, 2020 12:40 PM
Message:

Good points Sid about the value of your time, and the GFE for the costs. My wife hates when I put a value on our time, especially when it seems like we are spending more money.

Smokowna, my current bank just said they’ll do a 20 year at 2.75%, 2.863 APR. The closing costs are $5k and these are added to the loan, so my balance goes from 262k to 267k. I only pay a few “out of pocket” expenses. My appraisal is waived because of my low LTV. I’m told payments are reduced by $50 per month and the loan ends 1.5 years sooner, go to a 20 year mortgage, from my current loan maturity of 5/42.

Thanks Ray-N-Pa for the link. Awesome site. When I plugged above numbers into the hughcalc dot org, I think I show a breakeven time of 17 month. I say “I think” because I’m not sure I fully understand the calculation output. When I used a different hughcalc calculator, I come back with “closing costs recouped in 84 months” which makes sense as $5000 closing costs divided by $50 month savings equals 100 months. So, you can see from my babbling, I still “have much to learn Weedhopper”.

--71.187.xxx.xx




Mortgage thoughts? (by Ray-N-Pa [PA]) Posted on: Nov 18, 2020 12:56 PM
Message:

Thinking about your situation again....its tough to answer without knowing what you are trying to achieve.

It appears that the payment offered is nearly the same as what you have but you shave two years off of the note length. That is great if you want it paid off sooner.....but it doesn't do anything for increasing cash flow.

If you want to increase cash flow you could target the loan with the smallest balance and throw either money or lower rates at that.

If you want to get out of debt as quickly as possible you create a payment tsunami After loan with the smallest balance is paid off you can stack that payment on with the next loan with the next smallest balance. This creates a payment tsunami as the loans get paid off.

So what objective are you trying to achieve? --24.101.xxx.xx




Mortgage thoughts? (by BillW [NJ]) Posted on: Nov 18, 2020 1:38 PM
Message:

Tough questions. Every month I calculate our net worth and I see paying loan principal increases our net worth. In my scenario of this post, I note that If refinanced to a 20 year loan, I'd pay $160 more in principal, so this seems good to me.

My cashflow is fine, and other than 4 mortgages, I owe no money I suppose my goal is to have plenty of money in retirement and have fun along the way.

I was thinking now might be a good time to purchase another student rental property of something else. A cash-out refinance would lend itself to a cash purchase of a rental, but my current company said they don't do cash-out refi.

I should follow nhsailmaker's advice, about paying for a financial planner. I guess he'd also ask the question you asked me. Well, thanks Ray-N-Pa --71.187.xxx.xx




Mortgage thoughts? (by nhsailmaker [NH]) Posted on: Nov 19, 2020 8:15 AM
Message:

not sure which one to choose?

Dave Ramsey has that answer on his web site --73.61.xx.xx




Mortgage thoughts? (by BillW [NJ]) Posted on: Nov 19, 2020 10:12 AM
Message:

Oh yes, I've heard of Dave Ramesey. Seems like a solid guy. I will look it up. Thanks. --71.187.xxx.xx



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