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Motronic posted:And let's be serious: one of the best data points for what a thing is worth is what someone is offering to pay for that exact thing right now. That is in fact the definition of fair market value, assuming it was offered on the market and not privately offered to just the realtors business partners who all put in falsely low or high bids.
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May 16, 2018 02:14
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So i looked at some calculations about potentially reducing my interest rate (in the near future) from 4.75 to 4.5 by paying a point on a loan of 186k. The payback/break even time is 5.5 years on a 30 yr convential loan, which seems awfully long to me, but i havent seen any calculators that also show a comparison of using that same money to increase the downpayment. It makes more sense to me (dumb because i want to buy a house), of putting that towards principal instead, any thoughts? Also, would like advice on biweekly payments vs monthly. Wife thinks its a bigger commitment because you have to come on with that money more often, but i like the fact it builds equity way faster for the same $ per year if be on the hook for. Is it possible (or normal?) to be able to switch from bi weekly to monthly payments without refinancing? Also would like some opinions of those that do have bi weekly payments and if they love or regret them.
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May 16, 2018 23:37
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Tnuctip posted:So i looked at some calculations about potentially reducing my interest rate (in the near future) from 4.75 to 4.5 by paying a point on a loan of 186k. The payback/break even time is 5.5 years on a 30 yr convential loan, which seems awfully long to me, but i havent seen any calculators that also show a comparison of using that same money to increase the downpayment. It makes more sense to me (dumb because i want to buy a house), of putting that towards principal instead, any thoughts? Points payoff: You just run the calculator twice: Once at 4.75% @ $184,140 (or whatever) and once at 4.5% @ $186,000. Compare amortization tables. You get the input numbers off the Loan Estimate forms you are using to compare these two loans. Biweekly vs Monthly: Rip off to pay any extra to set it up this way. tl;dr it's one extra payment a year, made with money you leave in escrow all year. You pay 13/12'ths every month, when you accrue 12/12 they make the extra payment for you. You can save even more money by just paying that extra 1/12 in the "Extra Principal" line and it comes off immediately rather than at the end of the year. Look at the calculators to see the difference. They will all have a button "Extra payment: $100 [monthly, yearly]" or whatever, compare the tables on both. Make sure your Loan Estimate form says "No Prepayment Penalty" - it's a box.
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May 17, 2018 00:12
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H110Hawk posted:Points payoff: You just run the calculator twice: Once at 4.75% @ $184,140 (or whatever) and once at 4.5% @ $186,000. Compare amortization tables. You get the input numbers off the Loan Estimate forms you are using to compare these two loans. When you put it like that, biweekly sounds dumb, i was under the impression the payments hit at P&I every 14 days, not extra money in a “hidden” escrow account. One of the lenders i talked to said with biweekly, you can pay off a 30 yr loan in 25 years, was he bullshitting me?
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May 17, 2018 00:36
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Tnuctip posted:When you put it like that, biweekly sounds dumb, i was under the impression the payments hit at P&I every 14 days, not extra money in a “hidden” escrow account. One of the lenders i talked to said with biweekly, you can pay off a 30 yr loan in 25 years, was he bullshitting me? I'm not trying to be a dick here but you really need to play with some mortgage calculators. They're not that hard to get the hang of and will answer all of these questions. https://www.bankrate.com/calculators/home-equity/additional-mortgage-payment-calculator.aspx Put $78 in the "extra payment" field.
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May 17, 2018 00:45
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So as an update to my square footage fiasco, I made a new offer on the house based on it's actual size, which is actually very generous with the comps I was able to find. The seller came back and said they wanted 3,000 more basically, and I told my agent to draw the line in the sand. If they don't go with my offer they're basically loving themselves over, but their emotions are probably running high still from finding out they paid way too much for the house in the first place. So I could see them trying to hold out for a better offer that will never come. Hopefully their agent can talk sense into them.
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May 17, 2018 03:11
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Tnuctip posted:When you put it like that, biweekly sounds dumb, i was under the impression the payments hit at P&I every 14 days, not extra money in a “hidden” escrow account. One of the lenders i talked to said with biweekly, you can pay off a 30 yr loan in 25 years, was he bullshitting me? If you paid exactly the same amount over the course of the year, but split it into two payments per month instead of 1, you'd find yourself saving only a tiny amount on interest. The reason biweekly payments reduce your loan term is because you're paying your loan down faster by putting more money monthly into your principle. If you want to do that, just get monthly payments and then... pay your loan down faster! You can add more dollars per month to your payment, provided there is no prepayment penalty. There is no magic to biweekly payments.
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May 17, 2018 03:23
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Leperflesh posted:If you paid exactly the same amount over the course of the year, but split it into two payments per month instead of 1, you'd find yourself saving only a tiny amount on interest. This is correct, and I will add that conforming loans will typically only credit your interest once per month anyway, so you don't normally get any benefit other than an extra payment a year going towards principle. Additionally, it used to be some unscrupulous servicers would charge extra making biweekly payments. I do not know if this practice is ongoing but holy poo poo don't pay more for biweekly payments.
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May 17, 2018 05:53
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 I'm closing tomorrow morningEverything is already paid, did my pre-flight check to make sure everybody is on board, doing the final walkthrough tonight. Anything else I should prep for? Common problems I should be ready to solve?
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May 17, 2018 13:29
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Judge Schnoopy posted:
Plan on having a $20k repair immediately. Just lol if you don't have a 5 year emergency fund saved up for homeownership.
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May 17, 2018 14:20
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Judge Schnoopy posted:Anything else I should prep for? Common problems I should be ready to solve? Your hand cramping up signing everything, the house flooding between your inspection and the official handover. (This happened to a friend. Plus side they got all new floors out of it.)
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May 17, 2018 15:20
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therobit posted:This is correct, and I will add that conforming loans will typically only credit your interest once per month anyway, so you don't normally get any benefit other than an extra payment a year going towards principle. Additionally, it used to be some unscrupulous servicers would charge extra making biweekly payments. I do not know if this practice is ongoing but holy poo poo don't pay more for biweekly payments. Ok thanks, i did not know this. I will spend some time looking over payment calculators also.
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May 17, 2018 15:27
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Oh poo poo, after some negotiating they accepted my new lower offer. I'm getting a house bitches!  
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May 17, 2018 15:29
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Has anyone had to take a "Framework Online Homebuyer Course". My lender is asking for a certificate for its completion but it costs $75 to take and it smells of a loving scam to me. This is the site they provided: https://homeready.frameworkhomeownership.org/Default.aspx I'm going with a conventional loan, if it matters.
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May 18, 2018 03:39
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Why the gently caress would they require you to pay for a class that makes your investment safer for the bank???
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May 18, 2018 03:43
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Is there a thread for homesteading/ land buying/ living off the grid
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May 18, 2018 03:44
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SpartanIvy posted:Has anyone had to take a "Framework Online Homebuyer Course". My lender is asking for a certificate for its completion but it costs $75 to take and it smells of a loving scam to me. My wife and I had to take a homebuyer course, but it was free
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May 18, 2018 03:48
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Judge Schnoopy posted:Why the gently caress would they require you to pay for a class that makes your investment safer for the bank??? "Prove you're not a fool with money by being a fool with your money"
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May 18, 2018 03:52
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SpartanIvy posted:Has anyone had to take a "Framework Online Homebuyer Course". My lender is asking for a certificate for its completion but it costs $75 to take and it smells of a loving scam to me. Shop around your loan. What is your DTI?
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May 18, 2018 03:56
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H110Hawk posted:Shop around your loan. What is your DTI? Almost nothing. A few percent. I'm looking at aimloan now. I only have a week and a half to close though, and they pull this after the appraisal came back.
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May 18, 2018 04:07
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Lmao @ taking a for-pay course in order to spend thousands of dollars you don’t even have.
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May 18, 2018 04:31
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SpartanIvy posted:Almost nothing. A few percent. I'm looking at aimloan now. I only have a week and a half to close though, and they pull this after the appraisal came back. Get a couple of quotes, then go back to your lender and tell them this horseshit class is a dealbreaker and you are ready to walk unless they get rid of it. Then do so.
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May 18, 2018 04:40
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Leperflesh posted:Get a couple of quotes, then go back to your lender and tell them this horseshit class is a dealbreaker and you are ready to walk unless they get rid of it. Then do so. This has been my plan. I've already got an application filed with Aimloan tonight. I'm hoping they can take my appraisal that I've already paid for, instead of wanting me to pay another $450 for one. I'll figure it out when they call me tomorrow.
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May 18, 2018 04:42
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SpartanIvy posted:This has been my plan. I've already got an application filed with Aimloan tonight. I'm hoping they can take my appraisal that I've already paid for, instead of wanting me to pay another $450 for one. I'll figure it out when they call me tomorrow. Tell them your story and say you need to get far enough along in the process to know you don't need some bullshit paid class before you are out of pocket.
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May 18, 2018 06:19
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My lender offered to have me take the course to half my monthly PMI cost, but they also got a voucher to pay for it. Was fairly quick as far as online courses go and definitely worth it for the reduction in PMI.
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May 18, 2018 06:24
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SpartanIvy posted:So update. The huge discrepancy is because the square footage of the house is wrong in the listing, but also in the county records. It's 20% smaller than everyone thinks and luckily the bank appraiser made his own measurements and caught it. This house has been listed as the wrong size for probably the 70 years it's existed and every owner has been paying that much more in taxes because of it. I thought builder/architect/county records square footages were always bullshit because they just measure the actual footprint of the house which is never going to match gross living area due to interior walls and poo poo. How did the appraiser measure it?
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May 18, 2018 18:12
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veiled boner fuel posted:I thought builder/architect/county records square footages were always bullshit because they just measure the actual footprint of the house which is never going to match gross living area due to interior walls and poo poo. There are formulas to go from gross exterior sq ft to "Rentable Square Feet." This does not answer your question as to which they used.
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May 18, 2018 18:17
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The appraiser did brick to brick measurements around the exterior living area and added together the various rectangles that produced. He did not include the garage, which is what the original appraiser must have done long ago.
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May 18, 2018 18:54
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Also this $75 fee seems to be for the HomeReady loan product that Fannie Mae offers, and the fee goes to them. Is there a free course someone knows about that works to fulfill it's stupid requirement? I'm still pissed I'm being nickel and dimed so that I have the honor of paying them tons of money in interest for 30 years.
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May 18, 2018 18:57
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SpartanIvy posted:Also this $75 fee seems to be for the HomeReady loan product that Fannie Mae offers, and the fee goes to them. Is there a free course someone knows about that works to fulfill it's stupid requirement? I'm still pissed I'm being nickel and dimed so that I have the honor of paying them tons of money in interest for 30 years. Tell them another lender offered to cover that fee. 
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May 18, 2018 18:59
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For some reason I though the appraisals I’d had done were of more the “net” or actual useable footage variety but now looking at two of them they’re both of the “to the exterior walls” variety so now I’m curious what my current house really adds up to. Time to break out the laser measurer.
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May 18, 2018 19:12
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SpartanIvy posted:Also this $75 fee seems to be for the HomeReady loan product that Fannie Mae offers, and the fee goes to them. Is there a free course someone knows about that works to fulfill it's stupid requirement? I'm still pissed I'm being nickel and dimed so that I have the honor of paying them tons of money in interest for 30 years. I don't think you're getting around it. You might be able to find a free HUD approved counselor, but long story short you need an approved Form 1017 in your file, and the online course is the quickest way to get there.
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May 18, 2018 19:28
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skipdogg posted:I don't think you're getting around it. You might be able to find a free HUD approved counselor, but long story short you need an approved Form 1017 in your file, and the online course is the quickest way to get there. Document Title Goes Here, One or Two Lines of Text, Left Justified, Upper and Lowercase, with 18pt Line Spacing Nice.
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May 18, 2018 19:34
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skipdogg posted:I don't think you're getting around it. You might be able to find a free HUD approved counselor, but long story short you need an approved Form 1017 in your file, and the online course is the quickest way to get there. Possibly, but aimloan is $1000 less in closing costs and a better rate so I'm try to get them to close for me. Worst case I'll pony up 75 for the old lender.
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May 18, 2018 22:08
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SpartanIvy posted:Possibly, but aimloan is $1000 less in closing costs and a better rate so I'm try to get them to close for me. Worst case I'll pony up 75 for the old lender. The fact that you're even considering the other lender is making me scratch my head. gently caress them. $1075 less in closing fees plus a better rate adds up to a fairly large sum of money. I don't know whether AimLoan will close you on time but there's no guarantee that your original lender would either. I had zero problems in my close with AimLoan, but I have a fairly straight forward financial/credit situation. Remember that all lenders wait until the very last minute to put you through underwriting, your other lender isn't nearly as far ahead in the process as you may think they are.
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May 18, 2018 22:50
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SpartanIvy posted:Possibly, but aimloan is $1000 less in closing costs and a better rate so I'm try to get them to close for me. Worst case I'll pony up 75 for the old lender. Toss their rate at better.com while you're at it, just in case you can get the 1k
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May 18, 2018 23:45
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I have a week to close which aimloan says will be tough but my close date is the 29th so I'll go with whoever has a loan ready for me then. I'm out of time
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May 19, 2018 01:09
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Andy Dufresne posted:. Remember that all lenders wait until the very last minute to put you through underwriting, your other lender isn't nearly as far ahead in the process as you may think they are. My lender told me there's a minimum government required 3-day-before-close deadline and they queue up the documents to submit them exactly three days before closing. I wouldn't be surprised if this was an industry wide standard.
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May 19, 2018 01:56
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Sort of on this topic, I got a good rate and estimate from a lender online (Commonwealth Mortgage) but I am hesitate that it might be better to pay more to a local lender - my credit union gave us a pretty competitive estimate and I might be able to haggle, but I don't know if they'll actually be any better at getting everything done on time than this other company. I kind of feel like I am going to end up hounding whoever we pick, so I might as well spend as little as possible on it.
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May 19, 2018 02:59
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Ashcans posted:Sort of on this topic, I got a good rate and estimate from a lender online (Commonwealth Mortgage) but I am hesitate that it might be better to pay more to a local lender - my credit union gave us a pretty competitive estimate and I might be able to haggle, but I don't know if they'll actually be any better at getting everything done on time than this other company. I kind of feel like I am going to end up hounding whoever we pick, so I might as well spend as little as possible on it. Once the loan closes you're not going to speak with any of these people again. Add up the dollars you're going to pay on the worse rate and fees over the life of the loan. If you can honestly say that you're willing to pay $5-10k extra for a few more calls from a sales guy then go for it. Online brokerages close several orders of magnitude more loans than your local CU. They know what they are doing, they just tend to be impersonal because they are in a volume business.
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May 19, 2018 12:07
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