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The Finances and Debt Thread

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In 3 years her car will be paid off, $560/month. Our kids will be older and to the point where sharing a room isn’t possible once we get them larger beds and things. Like I said we get by, not having financial problems or anything, just wondered if rolling that student loan into my mortgage was worth it or not or would save me anything.

I make $120,000 a year so we aren’t struggling by any means.


Honestly with what your mortgage is,, around $1,000 a month, student loan only $400, car $560, then you have to take a hard look at your budget.

At $10k a month income, you need to dial back something and pay at least $500 a month. 10% of your pre-tax income is going to housing. I know there is probably some medical expenses for the wife, but you really need to knock out the student loan debt asap, you have the income to do it.
 
Honestly with what your mortgage is,, around $1,000 a month, student loan only $400, car $560, then you have to take a hard look at your budget.

At $10k a month income, you need to dial back something and pay at least $500 a month. 10% of your pre-tax income is going to housing. I know there is probably some medical expenses for the wife, but you really need to knock out the student loan debt asap, you have the income to do it.
Alright Ill take a closer look. Medical stuff for my kid not my wife. She’s just home to be the caretaker at home and school. Thanks Lee
 
Alright Ill take a closer look. Medical stuff for my kid not my wife. She’s just home to be the caretaker at home and school. Thanks Lee

no problem, I wasn't trying to be a jerk, just trying to get things in perspective. Budgets are very important, sick kids suck, I went through it, makes your heart break, but have to do what you can on the budget.

Get rid of the car and student loans and you will be thanking me in a few years. It will take some very tough budget decisions though, but you can do it if you want it bad enough....need to get the wife on board for it to work.
 
I make $120,000 a year so we aren’t struggling by any means.

I can put you in touch with my mortgage/refi guy. I just refi'd at 3.375%. Saved me 300$ a month AND they waived my appraisal and most of the costs. Cost me $1300 TOTAL. Will almost have paid itself off by EOY. He can tell you whther it makes sense to do a cash out re-fi. It probably doesn't. But if you're going to pay almost no fees on the re-fi and you don't mind going with a lender that will sell your loan (means almost nothing to you) then you could save a few $$$ after the breakeven point just doing a traditional re-fi and payoff).


Edit - Misread your post, Lee is right, you probably aren't saving anything due to the low amount left on the loan, so the refi fee is going to be too high for it to be worth it.
 
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I can put you in touch with my mortgage/refi guy. I just refi'd at 3.375%. Saved me 300$ a month AND they waived my appraisal and most of the costs. Cost me $1300 TOTAL. Will almost have paid itself off by EOY. He can tell you whther it makes sense to do a cash out re-fi. It probably doesn't. But if you're going to pay almost no fees on the re-fi and you don't mind going with a lender that will sell your loan (means almost nothing to you) then you could save a few $$$ after the breakeven point just doing a traditional re-fi and payoff).


Edit - Misread your post, Lee is right, you probably aren't saving anything due to the low amount left on the loan, so the refi fee is going to be too high for it to be worth it.

I am a mortgage guy although I don't do ohio.

Your rate is a function of rates from a few weeks ago, they are higher now.

They didn't "waive" your appraisal, fannie mae came back with an appraisal waiver, its sales tactic if they make it sound like it was them, and it makes me think the loan officers that explain it that way are hacks and dishonest.

That said, his rate is higher because its a small loan, yes loan size matters to fannie and Freddie plus your ate would be 3.75 today, his would be around 4.0, jus tnot enough savings.

And your loan officer did nothing special, all banks/loan officer/mortgage companies have options where you take a slightly higher rate than par (the no point rate) and get a lender credit to cover the fee's.

They did a great job at selling it like magic, its not, its just structuring a loan the right way to make it work best for you.

PS, at 3.5 you probably could have had a completely free loan, saved $275 a month, not sure if they presented that option, but its all about loan structure.
 
I am a mortgage guy although I don't do ohio.

Your rate is a function of rates from a few weeks ago, they are higher now.

They didn't "waive" your appraisal, fannie mae came back with an appraisal waiver, its sales tactic if they make it sound like it was them, and it makes me think the loan officers that explain it that way are hacks and dishonest.

That said, his rate is higher because its a small loan, yes loan size matters to fannie and Freddie plus your ate would be 3.75 today, his would be around 4.0, jus tnot enough savings.

And your loan officer did nothing special, all banks/loan officer/mortgage companies have options where you take a slightly higher rate than par (the no point rate) and get a lender credit to cover the fee's.

They did a great job at selling it like magic, its not, its just structuring a loan the right way to make it work best for you.

PS, at 3.5 you probably could have had a completely free loan, saved $275 a month, not sure if they presented that option, but its all about loan structure.

Sorry, I said laon guy waived appraisal, but yes, it was just an appraisal waiver.

Yes, I was offered 3.5 with no fees but I figured for as long as I'm going to be in the house it makes sense to take the lower amount and slightly more upfront cost as after 3.5 years it paid for itself.
 
I am a mortgage guy although I don't do ohio.

Your rate is a function of rates from a few weeks ago, they are higher now.

They didn't "waive" your appraisal, fannie mae came back with an appraisal waiver, its sales tactic if they make it sound like it was them, and it makes me think the loan officers that explain it that way are hacks and dishonest.

That said, his rate is higher because its a small loan, yes loan size matters to fannie and Freddie plus your ate would be 3.75 today, his would be around 4.0, jus tnot enough savings.

And your loan officer did nothing special, all banks/loan officer/mortgage companies have options where you take a slightly higher rate than par (the no point rate) and get a lender credit to cover the fee's.

They did a great job at selling it like magic, its not, its just structuring a loan the right way to make it work best for you.

PS, at 3.5 you probably could have had a completely free loan, saved $275 a month, not sure if they presented that option, but its all about loan structure.
Here is another option my wife and I are looking into. If we don’t move, we want to add-on. I have about $75,000 equity in my home. If I were to refinance my loan currently sitting at $125,000 to $200,000 mainly to add on to our home and lower my interest rate what would I be looking at?
 
Here is another option my wife and I are looking into. If we don’t move, we want to add-on. I have about $75,000 equity in my home. If I were to refinance my loan currently sitting at $125,000 to $200,000 mainly to add on to our home and lower my interest rate what would I be looking at?

You can only go to 80% of the value of your house on a refi, so about $30k in cash.

You would want to get a Heloc to 90 LTV so about $55k in cash, with the increased value of property after addition, then you would refi the 2 together.

That said, be careful on additions, you often spend allot more than the added square feet is worth.
 
You can only go to 80% of the value of your house on a refi, so about $30k in cash.

You would want to get a Heloc to 90 LTV so about $55k in cash, with the increased value of property after addition, then you would refi the 2 together.

That said, be careful on additions, you often spend allot more than the added square feet is worth.
Thanks again Lee. Not saying that it’s exactly what we are going to do, I just wanted to know if that was even an option for us. I am very handy and have family members who are plumbers and electricians that will do all that work at no cost, minus materials and some beer, so I was trying to do a lot of the addition myself. Outside of framing up the walls and Pouring a foundation.
 
Thanks again Lee. Not saying that it’s exactly what we are going to do, I just wanted to know if that was even an option for us. I am very handy and have family members who are plumbers and electricians that will do all that work at no cost, minus materials and some beer, so I was trying to do a lot of the addition myself. Outside of framing up the walls and Pouring a foundation.

You will need an architect and a structural engineer, you will need someone who knows how to pull permits, etc. Its not just going in and doing the work....that said if you do allot of the work for free, could be a great investment.
 
Here is another option my wife and I are looking into. If we don’t move, we want to add-on. I have about $75,000 equity in my home. If I were to refinance my loan currently sitting at $125,000 to $200,000 mainly to add on to our home and lower my interest rate what would I be looking at?
The way my house is set up the second floor only takes up about 3/4 of the width of the first floor. Meaning there is a solid 15 feet the second floor could theoretically be expanded out so the entire house was equal on both sides. My thought as an engineer this is a relatively simple expansion. Seriously how hard can it be to push the second floor all the way to the edge of the house? I contacted my contractor who helps me flip houses, he informed me that between the engineering study and all of the work that would need to be done it would cost the tune of $100-$125k.
This would be to add 300 to 350 square feet to the house. Raising the theoretical value by at most $65,000.

. Yeah I passed
 
Running this out there...

I have an outstanding offer to buy my house, and if I were to accept, I'd make enough to cover my down payment, and the money I paid, including interest, towards the mortgage, taxes, and insurance.

Basically I'd break even, and have lived here for two years. That makes sense, right? And should be considered a success? I'd walk away with roughly 40k on a house I paid 214 for, and put 20 down on. I'd be able to roll over that initial down payment into a new home, and be able to pay off some outstanding debt and re-bolster my savings in the process. This makes sense, right?

@Lee you do house stuff right?
 
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700 credit score, gonna have to start paying back student loans.


Except I'm 1099 and basically write almost everything off. I'm down to like 20k agi and my student loan forgiveness plan calculates that I don't have to pay anything at my current income for twenty years and it's forgiven.

Likely option.

However, my friend is down to owing 1/4 of what she initially did by not paying and getting deals her credit dropped 200 points though.

How quickly would you be able to raise it up should you start paying back on your loans etc? Figuring out exact details before I can even ascertain if I could live with a 500 credit score and then decide whether it's morally acceptable to do this.
 
700 credit score, gonna have to start paying back student loans.


Except I'm 1099 and basically write almost everything off. I'm down to like 20k agi and my student loan forgiveness plan calculates that I don't have to pay anything at my current income for twenty years and it's forgiven.

Likely option.

However, my friend is down to owing 1/4 of what she initially did by not paying and getting deals her credit dropped 200 points though.

How quickly would you be able to raise it up should you start paying back on your loans etc? Figuring out exact details before I can even ascertain if I could live with a 500 credit score and then decide whether it's morally acceptable to do this.

will places even rent to a person with a 500 credit score without a co-signer?
 
will places even rent to a person with a 500 credit score without a co-signer?

Yes, but chances are you're stuck renting from slumlords. In my experience, most landlords haven't given me any trouble because while I have shitty credit, I've never had an eviction.
 

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