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H110Hawk posted:My deepest condolences. First day, and I already had an issue with the garage door opener sensor going off due to the garage rail rattling so much 
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Jul 31, 2020 02:14
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I'm digging into a refinance, and I'm looking for some advice. Some of them have points, ends up being around $2500 That's not terribly unusual for a refinance right?
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Jul 31, 2020 18:25
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Jerk McJerkface posted:I'm digging into a refinance, and I'm looking for some advice. Some of them have points, ends up being around $2500 That's not terribly unusual for a refinance right? It's pretty standard, yes. You need to differentiate between lender fees and total fees though when you compare lenders against one another. Here's an example breakdown from Aimloan. The first image is all about buying or selling "points". Their lender fee is $995 so 3% is their "par" rate. 3.125% is "selling points", 2.875% and below are "buying points". (Note that in some cases the "par" rate is where you've sold enough points to have a $0 lender fee). When you click on the details you can see that the lender fee is only a small part of the total fees in the 2nd screenshot.  
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Jul 31, 2020 19:33
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I might have said it before in this thread, but be sure to shop around locally for a mortgage lender, too. I assumed a small bank couldn't compete with the big players, but actually the second local bank I called offered me 3.25% instead of everyone else's 3.75% for a jumbo loan. They undercut market rate and planned to service the mortgage themselves rather than immediately reselling since they like to be involved with local property.
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Jul 31, 2020 20:01
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Academician Nomad posted:I might have said it before in this thread, but be sure to shop around locally for a mortgage lender, too. I assumed a small bank couldn't compete with the big players, but actually the second local bank I called offered me 3.25% instead of everyone else's 3.75% for a jumbo loan. They undercut market rate and planned to service the mortgage themselves rather than immediately reselling since they like to be involved with local property. I actually called the local broker I used originally for my first mortgage. He was a nice guy that was referred by a friend. He's looking into it now.
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Jul 31, 2020 20:31
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Not sure if there is a better thread somewhere or not but here goes. Does anyone have any advice and recommended reading on buying cabin or vacation land? I'm looking at buying some empty land at roughly $45-65,000 to eventually build a cabin on or just use for recreation. Is it a terrible idea to put 10-20% down now and do a 30-year mortgage on it while rates or so low? Do they even do 30 year loans on stuff like this? I'm not really sure where to even start.
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Jul 31, 2020 20:38
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BaseballPCHiker posted:Not sure if there is a better thread somewhere or not but here goes. Does anyone have any advice and recommended reading on buying cabin or vacation land? Honestly at that cheap I think you would have trouble finding a lender willing to write you a loan for just the land at a rate worth paying. You're talking like $10k down on a transaction that's going to cost half that amount again in fees just to get a mortgage. Getting a construction loan should be doable though.
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Jul 31, 2020 21:42
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There are parts of the country where there are houses that cost under $50k, and there's lenders happy to write mortgages for them, including 30-years. But yeah the fees become an outsized chunk at some point. Also often the sellers of land plots are willing to directly finance at some basic rate. They like the long-term cash income.
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Jul 31, 2020 22:02
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Leperflesh posted:There are parts of the country where there are houses that cost under $50k, and there's lenders happy to write mortgages for them, including 30-years. But yeah the fees become an outsized chunk at some point. I don't doubt it can be done, but as an unimproved vacation property I have a feeling it's going to be expensive as a % of value. Almost seems like buying the land outright, then mortgaging it as part of the construction process would be significantly cheaper.
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Jul 31, 2020 22:12
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I've gotten a few quotes that all swirl around 2.8 @ .625 points. Seems like that's the way to go.
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Jul 31, 2020 22:27
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Jerk McJerkface posted:I've gotten a few quotes that all swirl around 2.8 @ .625 points. Seems like that's the way to go. That's pretty good even for right now, where even the bad rates are good rates.
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Jul 31, 2020 23:42
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H110Hawk posted:Honestly at that cheap I think you would have trouble finding a lender willing to write you a loan for just the land at a rate worth paying. You're talking like $10k down on a transaction that's going to cost half that amount again in fees just to get a mortgage. Getting a construction loan should be doable though. H110Hawk posted:I don't doubt it can be done, but as an unimproved vacation property I have a feeling it's going to be expensive as a % of value. Almost seems like buying the land outright, then mortgaging it as part of the construction process would be significantly cheaper. The more I look into it the more difficult it appears. Basically options seem like a loan to buy land + build, or contract to deed arrangements from the landowners, and I'm not sure how that would look. OR I just wait and save patiently and pay cash in another 10 years or so. Might just save up more for a down payment and see if we get something with a greater percentage down. Of course then I run the risk of spending it responsibly on my wife's student loans or something.
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Aug 1, 2020 00:31
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BaseballPCHiker posted:The more I look into it the more difficult it appears. Basically options seem like a loan to buy land + build, or contract to deed arrangements from the landowners, and I'm not sure how that would look. OR I just wait and save patiently and pay cash in another 10 years or so. Might just save up more for a down payment and see if we get something with a greater percentage down. Of course then I run the risk of spending it responsibly on my wife's student loans or something. What you want isn't insane, and is done regularly. If you do a purchase + construction loan you just need to talk to a bank about how it works and have a big cash buffer. Read the home building threads here. Land use deeds are another standard thing which can be done, if someone wants to grant you use for 30/50/100 years you just need to have a contract drawn by an attorney. It is perhaps the most expensive way to do it but that's all very normal. No clue how or if that would play with a mortgaged house. Sounds like regardless you need more money in the bank or to buy pre-built.
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Aug 1, 2020 01:49
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Yeah I’ll probably just end up saving for more of a down payment. Got excited looking at empty lots and cheap monthly payments with low interest. Once I finish my credit card debt off we’ll be netting quite a bit and I can save that up for a few more acres or lake front property or something.
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Aug 1, 2020 02:11
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Academician Nomad posted:I might have said it before in this thread, but be sure to shop around locally for a mortgage lender, too. I assumed a small bank couldn't compete with the big players, but actually the second local bank I called offered me 3.25% instead of everyone else's 3.75% for a jumbo loan. They undercut market rate and planned to service the mortgage themselves rather than immediately reselling since they like to be involved with local property. The other thing is the local banks will be more willing to lend if they personally know the area. For instance I had a condo I wanted to buy and the owner occupancy rate of the building was below 50% so the first dozen banks I asked refused to touch it. But a local bank had an agent who personally knew that specific apartment building and had done mortgages for it before, so he was much more comfortable lending.
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Aug 1, 2020 02:27
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So, you want either a "lot loan" or a lot+construction loan. These loans are at higher rates to compensate for riskier collateral. The other thing people do for second homes is to get a HELOC on their primary residence and use that to finance the purchase and construction, and then refinance later. Or they boy the lot on the helix and get a construction loan for the construction, etc.
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Aug 1, 2020 02:28
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The size lots and location I am looking for are cheap enough that waiting and paying cash is probably the way to go. Long term we'd like a cabin/retirement home in the area and thought buying the land 20-30 years ahead of time would be the way to go. Could put cheap RVs or yurts on it or something until we'd be ready to build and have a place to hang out in summers/winters before we do build.
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Aug 1, 2020 02:39
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H110Hawk posted:Sounds like regardless you need more money in the bank or to buy pre-built. This is the regular story of this type of question.
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Aug 1, 2020 03:21
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Zero VGS posted:The other thing is the local banks will be more willing to lend if they personally know the area. For instance I had a condo I wanted to buy and the owner occupancy rate of the building was below 50% so the first dozen banks I asked refused to touch it. But a local bank had an agent who personally knew that specific apartment building and had done mortgages for it before, so he was much more comfortable lending. This is a Fannie mae's, Freddie Mac, FHA thing. In order for the condo project to be acceptable for agency loans or FNMA and FMAC purchases, the codo project must be at least 60% occupied and meet a bunch 0f other standards too. So if the project doesn't meet those guidelines then a bank would most likely need to do a portfolio loan. Smaller, more local institutions probably do a higher percentage of their lending on their portfolio rather than to be packaged up for investors. I don't know for sure but I would guess Wells Fargo would do loans on investment properties in rental condo projects based on some roof the other business they take that other places won't.
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Aug 1, 2020 03:26
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therobit posted:This is a Fannie mae's, Freddie Mac, FHA thing. In order for the condo project to be acceptable for agency loans or FNMA and FMAC purchases, the codo project must be at least 60% occupied and meet a bunch 0f other standards too. So if the project doesn't meet those guidelines then a bank would most likely need to do a portfolio loan. Smaller, more local institutions probably do a higher percentage of their lending on their portfolio rather than to be packaged up for investors. I don't know for sure but I would guess Wells Fargo would do loans on investment properties in rental condo projects based on some roof the other business they take that other places won't. Wells Fargo is insane.. this is the second time they refused to lend to me, and once I closed with my mortgage broker, Wells Fargo bought the loving note from them anyway. If they hate giving me loans so much why do they keep buying them off a middleman afterwards?
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Aug 1, 2020 04:17
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Is there a reason why I am not finding a decent year-over-year mortgage interest tax deduction calculator? Or any good ballparks for home tax deductions or credits? I like this one ( https://www.bankrate.com/calculators/mortgages/loan-tax-deduction-calculator.aspx ) but I wish it showed every year.
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Aug 1, 2020 04:38
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Zero VGS posted:Wells Fargo is insane.. this is the second time they refused to lend to me, and once I closed with my mortgage broker, Wells Fargo bought the loving note from them anyway. If they hate giving me loans so much why do they keep buying them off a middleman afterwards? In many/most cases it is not actually them buying it as an investment, but them servicing the loan for an investor ( actually all the investors who own a piece of the CDO pie) in exchange a tiny rake off the cashflow. Edit: Or they bought and are also the servicer for a CDO or bond that the loan got stuck into. The bank I work for, as well as other institutions I've worked for, sells almost every loan to fanny, freddy, or investors but retains the servicing so to the customer they still have their loan at that bank, and the bank makes a tiny bit of income for servicing the loan. It makes customers happy and also provides additional sales opportunities because they remain customers for our bank. therobit fucked around with this message at 04:51 on Aug 1, 2020 |
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Aug 1, 2020 04:46
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Gabriel S. posted:Is there a reason why I am not finding a decent year-over-year mortgage interest tax deduction calculator? Or any good ballparks for home tax deductions or credits? I mean, take your amortization table, add it to your itemized deductions. Is that amount over the standard deduction? If so it's deductible, if not, it's not.
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Aug 1, 2020 05:58
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Gabriel S. posted:Is there a reason why I am not finding a decent year-over-year mortgage interest tax deduction calculator? Or any good ballparks for home tax deductions or credits? The standard deduction changed a few years ago and you are unlikely to see a tax benefit at today's interest rates unless you are otherwise itemizing your taxes or taking out a massive loan The reason you may not be finding a calculator is that it isn't really mortgage specific, it's tax specific. The mortgage interest and tax deduction is just one of hundreds of itemized deductions and whether you'll benefit from it depends on whether you have enough other itemized deductions to beat the standard deduction. Most people who work a regular job as a W2 employee will not benefit from itemizing.
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Aug 1, 2020 12:52
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My boyfriend is trying to buy a condo right now. His current lease has a few months on it, and the sellers want to push the closing off a few months to give them time to buy a new place. I'm explaining to him that he needs to find a lawyer and have them write in some kind of penalty in the P&S for the sellers overextending their stay, and he's asking me to explain what that would look like or what it would be called so he can explain it to a lawyer. I know people here had similar situations and rentback and stuff so would anyone have an actual example?
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Aug 1, 2020 20:00
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Zero VGS posted:My boyfriend is trying to buy a condo right now. His current lease has a few months on it, and the sellers want to push the closing off a few months to give them time to buy a new place. I'm explaining to him that he needs to find a lawyer and have them write in some kind of penalty in the P&S for the sellers overextending their stay, and he's asking me to explain what that would look like or what it would be called so he can explain it to a lawyer. I know people here had similar situations and rentback and stuff so would anyone have an actual example? Rent back is always bad. There's toooons of stories about people that agreed to this and they never leave or trash the place on their way out. Also no lawyer? Seriously? He's about to inherit some squatters with all the rights of tenants. Maybe help with some of the costs of a hotel for a month and a storage unit, but man he's nuts if he closes on a house with someone else living in it that has no specific plans to leave while lacking legal representation. If they are being stubborn then
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Aug 1, 2020 20:41
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You said the sellers want to push closing - what is the issue?
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Aug 1, 2020 20:59
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We did a rent back for 5 months after purchasing this year. This very thread warned me against it. Nevertheless, it went fine. Not one problem with the house, anything breaking, or former-owners-become-tenants trashing anything. They even moved out on time in the middle of a pandemic. In this case, they were a professional (upper level) DoD couple so there was some reason to expect good behavior. I think rent backs are very much situational.
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Aug 1, 2020 21:02
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Always expect good behavior from rich people. Solid way to do things.
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Aug 1, 2020 21:21
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pmchem posted:We did a rent back for 5 months after purchasing this year. This very thread warned me against it. Yeah but this dude is closing on a condo without a laywer. 
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Aug 1, 2020 21:23
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Yesterday, the buyers of my house asked to move in 2 days before closing... I told them absolutely not (through my realtor). Maybe I'll write up all the shenanigans I've experienced on this home sale some day.
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Aug 1, 2020 21:33
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Jerk McJerkface posted:Yeah but this dude is closing on a condo without a laywer. right, I wasn't responding to that point. just a general comment about rent backs.
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Aug 1, 2020 21:56
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Andy Dufresne posted:The standard deduction changed a few years ago and you are unlikely to see a tax benefit at today's interest rates unless you are otherwise itemizing your taxes or taking out a massive loan I guess that makes sense but I think I should have asked a more general question. Should I be considering potential tax breaks, credits, etc. when trying to budget for a home or does this only really apply to super rich folks? And I take it the amount of interest saved would have to be greater than $12 or $24k the current standard deduction.
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Aug 1, 2020 23:43
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https://www.forbes.com/sites/stephenmcbride1/2020/07/31/the-great-american-housing-boom-has-begun/#1fd50293337b
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Aug 2, 2020 00:04
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I have an aversion to reading any Forbes "sites" articles, is this guy worth anything?
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Aug 2, 2020 00:09
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Inner Light posted:I have an aversion to reading any Forbes "sites" articles, is this guy worth anything? Any article with that many exclamation points is zaurgshit.
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Aug 2, 2020 01:43
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I forget but I think Forbes website is just a blog aggregator, with very little direct connection with Forbes print magazine, they split and went seperate ways a decade ago? Maybe they made up and got back together, but long story short, most articles on Forbes should be taken with a grain of salt
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Aug 2, 2020 02:23
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I've been thinking about the housing market for a while especially with COVID, the economic recession, technology and global warming. Take this with a grain of salt and feel free to criticize this plenty. With COVID and modern technology you'll see many people working from home much more frequently on a regular basis. Folks will realize that there's no need for them to be in the office every day or even go to the office at all so now you don't need to live in or near the city. You just need internet and computer. This will cause a big shift towards rural and suburban arears with the thought back in peoples minds that "Oh, I'll just drive into the city when I need to visit. And this is so much better than spending thousands on a small apartment in a crowded city." Initially, this will be fine however suburbs don't scale. Prices will eventually go up and traffic unmanageable. Depending how many people move, urban real estate might drop especially if commercial real estate lease aren't renewed by big corporations who no longer need fancy downtown offices. Geographically speaking, the largest growing places (most affordable) are in the "Sunbelt". That's Arizona, Texas, Florida, Georgia, etc. but as Climate Change gets worse we will find out that suburban lifestyle isn't sustainable and Southern States the most susceptible to climate change and then you'll see move back towards urbanization in the Rust Belt.
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Aug 2, 2020 03:11
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punk rebel ecks posted:https://www.forbes.com/sites/stephenmcbride1/2020/07/31/the-great-american-housing-boom-has-begun/#1fd50293337b This article is nonsense and misses some very important points. Of course new home sales are booming. Existing home listings are down substantially (April i believe new listings was like 40% down). And of course people are refinancing, interest rates are at all time lows. At the same time, there is some pretty anomalous stuff going on. Foreclosures are down 80% compared to last year, and its not because the economy is doing so well. And a huge number of people aren't able to make payments. There's a world where we manage all these balls in the air well, there's no housing collapse, and instead the massive liquidity leads to price spikes. There's a world where we don't manage all these things well and suddenly banks go from "let's not foreclose on anybody" to "let's foreclose on everybody" and housing prices collapse.
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Aug 2, 2020 03:53
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Hadlock posted:I forget but I think Forbes website is just a blog aggregator, with very little direct connection with Forbes print magazine, they split and went seperate ways a decade ago? Maybe they made up and got back together, but long story short, most articles on Forbes should be taken with a grain of salt Forbes.com is both pieces at once. If you see "Forbes Staff" next to an article, it's from the magazine side, and you should be able to trust it about as much as you've been able to trust Forbes for the past 20-something years (which is to say, "only so much" - they started going to poo poo around the time that Steve Forbes decided he would make a good President and haven't really recovered). If it says "Contributor" or "Senior Contributor" it's worth exactly what you paid to read it, which is to say nothing but your time, and it probably has an agenda of some kind (particularly transparent where Bitcoin is concerned; that community has flocked to the thin veneer of credibility). If it says "Paid Program" it's even more of a shill than usual Forbes content.
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Aug 2, 2020 03:58
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