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Home Owner Thread

Do Not Sell My Personal Information
There is allot of talent of all types on RCF. From a guy who has seen over 4,000 appraisals in his career i can 100% say all of the do it yourself projects are beyond amazing.
 
Was talking to someone and they said they were refinancing their mortgage.

I looked into it. I thought about what I'm paying per month over my monthly amount and wanted to have that comparted to what my payment would be for a 15 year. I refinanced last year when rates dropped. I asked the person that guy used and the person I've used and this is what they sent to me. I am currently paying $1000 a month, which again is over what my monthly is supposed to be.

Broker 1:
Term: 15 Year
Purposed Rate: 2.375%
Estimated P&I Payment: $1074
You are taking 14 years off your mortgage and saving about $75,000 in interest over the life of your loan.

Broker 2:
15yr mortgage for 160k @2.5% would make your payment 1066.85. There are a lot of factor that are consider when doing your loan. I have been getting an appraisal waiver on most of my clients. Closing cost would run you about 1800-2200.

How is the second one a higher interest rate but a lower monthly payment? Or is that just because it was an estimation and not the real thing with all of the info factored in?

I am far from a loan expert. Are there things involved I need to look closer at? Or is it a matter of looking at what refinance option gives me the lowest monthly payment for the loan amount I need for the 15-year term?
 
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Was talking to someone and they said they were refinancing their mortgage.

I looked into it. I thought about what I'm paying per month over my monthly amount and wanted to have that comparted to what my payment would be for a 15 year. I refinanced last year when rates dropped. I asked the person that guy used and the person I've used and this is what they sent to me. I am currently paying $1000 a month, which again is over what my monthly is supposed to be.

Term: 15 Year
Purposed Rate: 2.375%
Estimated P&I Payment: $1074
You are taking 14 years off your mortgage and saving about $75,000 in interest over the life of your loan.

15yr mortgage for 160k @2.5% would make your payment 1066.85 and a 30 yr mortgage would be 3.25% and your payment would be 696. There are a lot of factor that are consider when doing your loan. I have been getting an appraisal waiver on most of my clients. Closing cost would run you about 1800-2200.

How is the second one a higher interest rate but a lower monthly payment? Or is that just because it was an estimation and not the real thing with all of the info factored in?

I am far from a loan expert. Are there things involved I need to look closer at? Or is it a matter of looking at what refinance option gives me the lowest monthly payment for the loan amount I need for the 15-year term?
@Lee
 
Was talking to someone and they said they were refinancing their mortgage.

I looked into it. I thought about what I'm paying per month over my monthly amount and wanted to have that comparted to what my payment would be for a 15 year. I refinanced last year when rates dropped. I asked the person that guy used and the person I've used and this is what they sent to me. I am currently paying $1000 a month, which again is over what my monthly is supposed to be.

Term: 15 Year
Purposed Rate: 2.375%
Estimated P&I Payment: $1074
You are taking 14 years off your mortgage and saving about $75,000 in interest over the life of your loan.

15yr mortgage for 160k @2.5% would make your payment 1066.85 and a 30 yr mortgage would be 3.25% and your payment would be 696. There are a lot of factor that are consider when doing your loan. I have been getting an appraisal waiver on most of my clients. Closing cost would run you about 1800-2200.

How is the second one a higher interest rate but a lower monthly payment? Or is that just because it was an estimation and not the real thing with all of the info factored in?

I am far from a loan expert. Are there things involved I need to look closer at? Or is it a matter of looking at what refinance option gives me the lowest monthly payment for the loan amount I need for the 15-year term?
The second one is a higher interest rate but lower monthly payment because you're paying it every month for 30 years... the second one is a higher payment because you're paying it for only 15 years.

The shorter you want the length of the loan to be, the more you pay off monthly.

I just refinanced in March, got 20-years at 2.75%, barely anything in points (like $1000).
 
@Blink I like the bowtie/butterfly patches. Can I ask how long you let the wood dry for?
 
The second one is a higher interest rate but lower monthly payment because you're paying it every month for 30 years... the second one is a higher payment because you're paying it for only 15 years.

The shorter you want the length of the loan to be, the more you pay off monthly.

I just refinanced in March, got 20-years at 2.75%, barely anything in points (like $1000).

The second one was the guy giving me the 15 and 30 year options ( edited the 30 part out). I'm most likely just going 15. I was just curious why broker 1 estimated a higher payment with a lower rate compared to Broker 2 who had the lower payment and higher rate.
 
The second one was the guy giving me the 15 and 30 year options ( edited the 30 part out). I'm most likely just going 15. I was just curious why broker 1 estimated a higher payment with a lower rate compared to Broker 2 who had the lower payment and higher rate.
If everything is identical, it's fees being rolled into the loan. Find out how many points you're being charged or how much each balance is.
 
I am still a big believer in 30 year mortgages. Why not lock in the debt that cheap now and invest the difference. You don’t have to have a high return on your money to make it worth whole. To me having equity in a house is a worthless asset. Outside of selling the home or taking out a home equity loan, there is no return on the equity.
Where as if you put the money in the stock market or some type of mutual fund, your equity is liquid. Would you rather have money in an account you can take anytime or tied up in a house that you can’t.
Here is my recommendation, take the monthly savings from a 30 to 15, assume a low return of 3%, a middle return of 5%, and the a high return of 8%. Run the model for 15 years. Figure out what you would owe at year 15 on a 30 year mortgage, and subtract what would be in your investment account. This would be the best way to compare the savings.
 
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@Blink I like the bowtie/butterfly patches. Can I ask how long you let the wood dry for?
I'm not sure I understand the question, so hopefully one of these is your answer:

The butterflies were cut from a cutoff 2x4 my neighbor gave me that is god knows how old. I can't fathom why someone has a walnut 2x4, but there it was.

The slab itself was kiln dried at the mill for probably 3 months. Air drying would have probably been 2+ years at the thickness of the slab.

The butterflies are epoxied in with the same pour as the void, so it was 72 hours to full cure with the deep pour epoxy I was using.
 
I am still a big believer in 30 year mortgages. Why not lock in the debt that cheap now and invest the difference. You don’t have to have a high return on your money to make it worth whole. To me having equity in a house is a worthless asset. Outside of selling the home or taking out a home equity loan, there is no return on the equity.
Where as if you put the money in the stock market or some type of mutual fund, your equity is liquid. Would you rather have money in an account you can take anytime or tied up in a house that you can’t.
Here is my recommendation, take the monthly savings from a 30 to 15, assume a low return of 3%, a middle return of 5%, and the a high return of 8%. Run the model for 15 years. Figure out what you would owe at year 15 on a 30 year mortgage, and subtract what would be in your investment account. This would be the best way to compare the savings.

So you're saying that instead of getting a 15 year loan with an $1100 payment per month that I am better off a 30 year with a $700 payment and investing that $400 a month?
 
So you're saying that instead of getting a 15 year loan with an $1100 payment per month that I am better off a 30 year with a $700 payment and investing that $400 a month?
If you can take money and earn at a rate that is higher than the interest, you should always take on that debt. It's profit.

This decision is a personal one, and depends on your risk tolerance as well as your belief level in the investments you would be making.

I wouldn't tell anyone they should or shouldn't make investments, and I wouldn't tell anyone how investments will perform in the future.
 
So you're saying that instead of getting a 15 year loan with an $1100 payment per month that I am better off a 30 year with a $700 payment and investing that $400 a month?
Short answer is yes, but depends on your risk tolerance as Q said. Lee is a mortgage guy and used to be a financial advisor. He should have some insight.

But at 2.5% (or whatever) chances are very high over the long term that putting money into a general long term mutual fund should give a higher performance. However without knowing a whole lot of details about your life this may not be the right decision for you.
 
The beauty of dollar cost averaging is that your $400 will purchase more shares when the market drops. Conversely, you'll purchase less shares when the market is higher.
You want low cost funds. I prefer Exchange Traded Funds (ETFs) and a platform that doesn't charge fees to purchase said funds.

And, as bob2 said, everyone's situation is different, so consult with a financial professional and do your homework.
Taxes can also be a factor. An IRA/Roth IRA could be an option for an investor with a long term outlook, as in the above scenario.
 
So you're saying that instead of getting a 15 year loan with an $1100 payment per month that I am better off a 30 year with a $700 payment and investing that $400 a month?
That’s what I did. It also gave me more cash flow. If shit ever hit the fan anything I only have a $700 month house payment, I also would have the money I invested.
If shit hit the fan on a 15, you have a ton of equity in a house you can’t touch unless you sell it.

With today’s cost of debt. I would take on as much as I can and for as long as possible, and keep my cash in hand.
 

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