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QuarkJets posted:No, that's something that I wanted to be true but out of all of the lenders I've spoken to they all require that you personally ask for the loan to be recast in order for that ratio of principal to interest in your payments to change, and they can refuse to do this for any reason. The default is that your principal balance goes down by however much extra you pay but your payments remain the same, and you are paying the same amount of precomputed interest based on the amortization that occurred when you took the loan. Yeah, not how that works. If you pay principal ahead of schedule without recasting, you pay less in interest on the loan and you effectively reduce the term at the same time. You'll still have the same total monthly payment until the principal is fully paid. The difference with adding a recast in the mix is they recalculate everything to keep the term length unaffected, so your total monthly payment drops.
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Jun 17, 2021 05:43
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Found out the (almost) hard way today that the top two Google results for USPS mail forwarding are the fake ones for some reason. Fortunately my credit card caught it and asked me to authorize the $90 charge... Finally a question but about my own house, but a friend searching now. What year are you good with asbestos being almost noon existent? I usually go with 1980 probably, 1985 for sure, but his realtor says potentially to 1990 because stock was still around. He doesn't want to deal with it, but I think assuming a builder sitting on 10 years of stock is crazy and cutting way too many homes from his search.
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Jun 17, 2021 06:27
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QuarkJets posted:No, that's something that I wanted to be true but out of all of the lenders I've spoken to they all require that you personally ask for the loan to be recast in order for that ratio of principal to interest in your payments to change, and they can refuse to do this for any reason. The default is that your principal balance goes down by however much extra you pay but your payments remain the same, and you are paying the same amount of precomputed interest based on the amortization that occurred when you took the loan. I think you're confusing some things. Recasting is basically recomputing the amortization schedule of an existing loan due to a large lump sum payment. I think what you're talking about is how overpayments are handled. So amortization in this context is basically just a way to calculate what the monthly payment has to be in order to pay the loan off in a certain time frame. That's all, it's not setting in stone how much interest you owe total to the lender. Interest owed is based on remaining balance, it is not predetermined. So by reducing the principal, you're reducing the amount of money that interest is calculated on, which means you pay less overall interest over the life of the loan. So with that said, overpayments can be applied towards principal, or they can be applied towards future payments (so that you're "paid ahead," which is not as good as lowering principal). Scummy student loans, for example, will default to future payments because gently caress you, that's why. You can, however, tell them to apply overpayments towards principal and they have to do it. They might make this hard, like forcing you to send a paper check with a written note on the coupon (gently caress you sallie mae), but they have to do it. FWIW, every mortgage servicer I've had defaults overpayments to principal. Recasting can change your minimum payment and amortization schedule, however it is never automatic. You need to ask the lender, and usually there are rules and sometimes fees (few hundred bucks IIRC). You typically can't recast for paying an extra $100, but maybe an extra $5k will allow you to recast (has to be a lump sum). Not all loan types can be recast, and not all lenders permit recasting, and their rules are all different. If you're going to recast, make sure you talk to the bank ahead of time; don't just plop a pile of money in and assume you can recast a month later. Massive caveat: some lenders have prepayment penalties. I've never seen it, but they do exist and your Loan Estimate and Closing Disclosure will have this information on it.
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Jun 17, 2021 13:07
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Maybe a helpful point would be to compute how mortgage payments are calculated. Here's a formula from bankrate: code:P=310000 r=(0.028/12) ~= .00233 n=360 M = 310000[.00233(1+.00233)^360/((1+.00233)^360)-1)] = $1273. So that's my payment, if I want to pay my $310,000 mortgage down in 30 years @ 2.8. If course tax/insurance are not included. Now the question is how is this split into principle and interest. My payment will always equal $1273 (well later it will go down slightly, but for the same of explanation lets say it doesn't). At the start, the $1273 is mostly interest, and only some principle, with each payment the balance slightly shifting (like $2 or $3 a month) less interest, and more principle. The split is computed each time you submit a payment: 1) take the entire principle amount. The first payment is against the entire $310,000, so multiple that by the annual rate (in my case 2.8) = 310,000 * 2.8% = $8680 2) that number ($8680) is the annual interest, so take that number and divide by 365 (to get the daily slice of that interest) 8680/365= ~$24 3) take that number ($24) and multiply it by the days since the last payment, likely 30 days (monthly payments) = $713 this is the interest for that payment period 4) take that number ($713) and subtracted it by the monthly payment value we figured above 1273-713= $560 this is principle part of the payment, and actually goes against reducing the balance 5) subtract that number from your principle 310000-560= 309440. This is your remaining principle 30 days later it all happens again, but it's based on the new lower principle number: 309,444*.028= 8664 (see it's $16 than last time). 8664/365 = $23 ($1 dollar less daily interest) 23*30= $712 payment split 712 int / 561 principle. 309,444-561 = 308883 so on and so forth. If you make payments more frequently (say bi-weekly payments of half your mortgage) the interest is computed every 14 days, instead of every 30. and each time it's a slightly better value 14 days interest on 300800, and then 14 days on 3007000, etc. Whatever portion of your payment is in excess of that payment value goes to principle. The bank only cares about getting the full 1273 each month. So if you do bi-weekly payments of only 500 total, you won't meet that, you'd need to do biweekly payments of atleast half so you give them 1273 every 30 days. However since there's 12 months but 26 bi-weekly periods, you will end up making two extra half payments a year. These two payments aren't "free" as in no interest is computed, since as always, you'll pay for 14 days of interested since it's computed against your last payment. Some banks allow you to make principle only payments, but this again is just a payment made on the same day as your normal payment, so you satisfy the 30 days of interest, and then the excess amount as always goes against your principle. A helpful way to fix this concept in your mind is to realize that interest you owe is computed every time you make a payment, and you are charged interest back to the date of your previous payment. This is how car payments and mortgage payments are calculated.
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Jun 17, 2021 14:32
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lampey posted:If rates have dropped more than .75% refinancing is probably worth doing, shop around some and run the numbers. That’s (possibly) the plan at some point- but my current rate has a penalty of 3% if I leave it early, so I need to find when the penalty payment would be less than the amount I would save! At the moment the cost of leaving the rate early is way more than I would save each month across the term of the rate, but I’ll keep an eye out.
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Jun 17, 2021 15:32
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Paying extra mechanics is interesting and good to know, but my question is how does all that not fall victim to the everyone is stupid? Because it's not related to sales?
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Jun 17, 2021 15:54
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Cross post from the interior design thread, seems like this is apropos. Strap in, it's quite something. New to the MLS 2 days ago, but the YouTube vid is from mid 2020.  NSFWhttps://www.redfin.com/CO/Colorado-Springs/4525-Churchill-Ct-80906/home/34515765 https://www.youtube.com/watch?v=xbadtmWh7Y4
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Jun 17, 2021 16:07
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Epitope posted:Paying extra mechanics is interesting and good to know, but my question is how does all that not fall victim to the everyone is stupid? Because it's not related to sales? It's tightly regulated by the federal government. There are further things such as "extra payments" just count like paying July and will not be accepted as partial. The people who pay 26 times a year actually come out behind the people who put 1/12th extra principal payments. And sometimes your servicer fucks it up.
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Jun 17, 2021 16:25
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Inner Light posted:Cross post from the interior design thread, seems like this is apropos. So the tenants caused long term wood rot? Looks like an absent landlord that didn’t maintain the property or relationship. Would buy that house easy to remodel now the demo is done.
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Jun 17, 2021 16:38
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Inner Light posted:Cross post from the interior design thread, seems like this is apropos. Dang I almost felt bad for landlords for like a fraction of a second, but no, I don't care.
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Jun 17, 2021 17:13
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Elephanthead posted:So the tenants caused long term wood rot? Looks like an absent landlord that didn’t maintain the property or relationship. Would buy that house easy to remodel now the demo is done. There's a bit more in that video beyond the wood rot. The real issue seems to be the property manager was negligent to a pretty shocking degree, which is the final bit she sums the video up with.
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Jun 17, 2021 18:01
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H110Hawk posted:And sometimes your servicer fucks it up. Ok cool, it sounded too good to be true, so comforting to see the blemishes that make it real
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Jun 17, 2021 19:35
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A neighbor listed their house last week, we didn’t even know about it, and it sold for $10k under list price. They only received 1 offer but their agent admitted they listed the house too high, didn’t have multiple open houses, and the inspection report found mold in the attic and broken window seals. It was also a very rainy weekend. I’m a bit paranoid the market has shifted but our agent is confident the neighbor hosed up and turned away buyers. The offer was lower than the last house they closed a few weeks ago by $20k so we’re all surprised. We’re listing next week to avoid it closing.
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Jun 17, 2021 21:11
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Glumwheels posted:A neighbor listed their house last week, we didn’t even know about it, and it sold for $10k under list price. They only received 1 offer but their agent admitted they listed the house too high, didn’t have multiple open houses, and the inspection report found mold in the attic and broken window seals. It was also a very rainy weekend. I’m a bit paranoid the market has shifted but our agent is confident the neighbor hosed up and turned away buyers. How did you find out the sale price while it was still pending, did the seller or their agent spill the beans to you?
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Jun 17, 2021 21:17
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I may be up a creek here, hoping someone more familiar with the process can help me out. I signed closing documents a day ago on a refinance. In the loan, there was a clause I signed stating that "I have not resigned my position or notified my employer I am retiring, nor will I do so in the 30 days following the closing date of this loan." Today I got an offer on a job that I absolutely don't want to pass up just because of this refi. Same salary, similar job, not a big career change. The problem is, I would need to put in my 2 weeks by tomorrow. If I tell my Loan Officer, will they waive that? Do I need to cancel/back out of this loan?
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Jun 17, 2021 21:32
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Just tell them; they don't want to impede your career, they just don't want surprises. They may balk but if you're honest it might work out. And you're not retiring or resigning, just changing jobs. I think they can work with that.
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Jun 17, 2021 21:52
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Inner Light posted:How did you find out the sale price while it was still pending, did the seller or their agent spill the beans to you? The agents are friends, knew each other from a previous job. I think we may list ours lower than we originally thought to not put people off from the price. Get more foot traffic but I’m worried things have cooled some. Maybe people are out on vacation now or idk. Since we’re having warm spring weather next weekend we’re planning 3 open houses and to be out of the house for 4 days to let people go through it.
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Jun 17, 2021 21:58
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Good Realtors, if you believe in such a thing, know pending prices because they have friends and colleagues with every major brokerage. It is a very bad sign if your realtor can't get you the pending price on a comp.
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Jun 17, 2021 22:02
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I'm probably going to borrow over $1 million ($1,000,000) to purchase a condo, and with it, the obligation to pay obscene HOA fees for as long as it remains in my possession. I am also purchasing a longer commute for myself (but it is right by key transit infrastructure, so my fiancee won't have to risk death by car commute due to epilepsy when we return to the office). It's a really nice condo. It's brand new and has a two-car garage connected directly to the unit, also plenty of space for our home offices. The facilities in the complex are very nice. I'm still early in the process but the entire thing already feels insane and borderline suicidal. But at least I won't be fighting against 30 young executive types for the right to bid 25% over list price on this one.
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Jun 18, 2021 00:52
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Cenodoxus posted:I may be up a creek here, hoping someone more familiar with the process can help me out. Call them on the phone. "Between closing and now I received an offer for new employment which I intend to take. What would you like me to do about the mortgage?" (It's their money to lose. I wouldn't lose sleep over it.) Dollars to donuts their reply is "Don't tell me. Don't worry about it."
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Jun 18, 2021 00:59
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Vox Nihili posted:I'm probably going to borrow over $1 million ($1,000,000) to purchase a condo, and with it, the obligation to pay obscene HOA fees for as long as it remains in my possession. I am also purchasing a longer commute for myself (but it is right by key transit infrastructure, so my fiancee won't have to risk death by car commute due to epilepsy when we return to the office). My opinion on condos has softened over the years, a very important step though is to make sure that the association is sane and managing its finances properly. With a new condo association that may not be feasible, so I guess keep your fingers crossed. We are considering condos and townhouses for our next purchase. Not as nice as a detached sfh, but more affordable in nice areas for sure.
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Jun 18, 2021 01:28
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QuarkJets posted:My opinion on condos has softened over the years, a very important step though is to make sure that the association is sane and managing its finances properly. With a new condo association that may not be feasible, so I guess keep your fingers crossed. We've requested all the HOA documentation, so ideally we will get a good look beneath the hood on this. It's an enormous complex that has already been around for some time and is maybe 75% of the way built up at this point, so hopefully we won't be totally blind. It will be a bit sad not to have a yard, but we've been living in apartments for years without issue and the SFHs in our price range are generally 50-80 years old, smaller, in crappier areas, and oftentimes pretty wonky.
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Jun 18, 2021 01:48
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Fun fact a friend of mine bought a new condo. Once the last unit sold the "temporary management company" left and it turns out that they embezzled all the seed money for the hoa and they were flat broke. 
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Jun 18, 2021 01:52
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Cenodoxus posted:I may be up a creek here, hoping someone more familiar with the process can help me out. So I am assuming you are still in the recission period and your loan has not funded yet? I wouldn’t bother to tell them because they probably already did their employment verification prior to signing, and I don’t believe they can shut your loan down now anyway after you signed. But you could also just wait until the loan funds and give a couple days fewer notice.
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Jun 18, 2021 03:47
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therobit posted:So I am assuming you are still in the recission period and your loan has not funded yet? I wouldn’t bother to tell them because they probably already did their employment verification prior to signing, and I don’t believe they can shut your loan down now anyway after you signed. But you could also just wait until the loan funds and give a couple days fewer notice. That's correct, we're still in the recession period. They had me sign things before the closing as well, and said those docs were part of their final employment verification - but none of those documents mentioned changing jobs.
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Jun 18, 2021 04:13
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Cenodoxus posted:That's correct, we're still in the recession period. They had me sign things before the closing as well, and said those docs were part of their final employment verification - but none of those documents mentioned changing jobs. The Dodd Frank rules require they verify employment within 10 business days prior to closing (signing). I work for a Home Equity department, but we do not release a loan to closing before we do the final verification. If it sits around and does not get signed, then we re-do it. But if it gets signed, we do not gently caress with it. YMMV. Your broker probably does not want to know.
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Jun 18, 2021 07:09
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PageMaster posted:Finally a question but about my own house, but a friend searching now. What year are you good with asbestos being almost noon existent? I usually go with 1980 probably, 1985 for sure, but his realtor says potentially to 1990 because stock was still around. He doesn't want to deal with it, but I think assuming a builder sitting on 10 years of stock is crazy and cutting way too many homes from his search. Comedy option: friend could consider pre-WWI houses. Asbestos as a building material additive didn't really take off until the 1930's, so houses built before that period have lower risk of hidden asbestos. And then you could just exclude 20's houses and anything with extensive alterations from 1930-1990 for good measure. The nice thing about super early uses of asbestos is that they are often clearly labeled, unlike the shittons of asbestos-laden building materials that came later. Here's an example:  After a while of doing laundry regularly in the basement of my old apartment building (built 1915), I got curious about the little diamond stickers on the insulated hot water pipes above my head and...  Asbestos! Good thing the canvas wrapping was still completely intact. Fun fact: Ambler, PA is now a superfund site.
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Jun 18, 2021 07:42
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Yeah, the health system I work at in Philly handles a shitload of mesothelioma cases because of Ambler.
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Jun 18, 2021 08:48
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Cenodoxus posted:I may be up a creek here, hoping someone more familiar with the process can help me out. So it looks like you can just start the new job and let the old one fire you. Nothing in there about being fired. Put in for your vacation and sick days and resign on day 31 if you’re not fired by then.
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Jun 18, 2021 14:06
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House sale was going great; got an offer in the first 2 days for 5% over asking, inspections started moving along, live was grand. Radon inspection only lasted two hours, which confused me but whatever! . . . . then I got a call from my realtor this afternoon that the buyer was going to move to the local office from out west, but just found out that the local office was going to be closing now. gently caress. He claimed that because of that, this would trigger the financing contingency and I couldn't keep the earnest money. gently caress. I told him that relisting the house ASAP was probably the top priority, but that I wanted the declination document that stated that financing was withdrawn because I figure if I'm gonna let the EMD go, I'm gonna make them work for it. He said that he heard the inspections the buyer paid for came back "very good" so that he was going to try and get copies of them as a consolation prize so maybe we can entice other buyers with pre-completed inspections. . . . whatever, I guess. I kinda want the EMD for wasting a week+weekend on the market, but I'm probably not getting that (and tbh the realtor didn't sound like he felt like trying to claw it back, and maybe he's right - I think it was this thread that suggested that if a buyer winked and nudged their realtor correctly, it was trivial to get the lending institution to tank the deal). Somehow I can't help but wonder if I should have played hardball with the buyer and suggested/insisted that if they thought their offer was as strong as my realtor thought it was, they should waive the financing contingency. On one hand, it'd be nice; on the other, if I was a buyer and being asked to waive that I'd have probably backed out.
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Jun 18, 2021 14:33
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Zarin posted:
Make them do the paperwork at the very least. Your realtor dgaf because that's not money they see.
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Jun 18, 2021 14:44
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That's what the financing contingency is for, sucks for you but hopefully the inspections make the next offer go more smoothly.
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Jun 18, 2021 14:55
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Cyrano4747 posted:Make them do the paperwork at the very least. Yeah seriously, don't let them walk away easy. Make them work for it. IMO a week seems pretty sketchy... seems unlikely that the entire work situation would change that dramatically in a week. I mean, i wouldn't spend money on a lawyer, but I'd probably get a little lovely about it.
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Jun 18, 2021 15:08
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How does this one look? Going to check it out later today: https://www.redfin.com/WA/Port-Ange...tm_content=link I want the most foresty, cabiny place to toil away remotely and have lost bids on numerous other places above Port Angeles, Sequim, and in the Elwha Valley near Olympic NP. This place doesn’t have much of a view or a massive shop/garage but a real log cabin sounds fun even if they cost a bit more to maintain. I’m ok driving everywhere, doesn’t cost much in a Prius. My only real concern is that the Peninsula gets redneck loving FAST west of Port Angeles, and that this area is firmly outside of the “blue hole” and gets some truly tropical rainfall.
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Jun 18, 2021 15:11
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DaveSauce posted:Yeah seriously, don't let them walk away easy. Make them work for it. Yeah; the confusing thing to me is that my realtor said the buyer "prepaid" for inspections and they definitely did get inspections done, so . . . . ? The thing truly is  all around. As far as I can tell, the person is from out of state and never had their realtor set foot in the place before making the offer.
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Jun 18, 2021 15:16
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Queen Victorian posted:Comedy option: friend could consider pre-WWI houses. Asbestos as a building material additive didn't really take off until the 1930's, so houses built before that period have lower risk of hidden asbestos. And then you could just exclude 20's houses and anything with extensive alterations from 1930-1990 for good measure. The nice thing about super early uses of asbestos is that they are often clearly labeled, unlike the shittons of asbestos-laden building materials that came later. Compared to most of my shoddy homes built during the 2000's housing boom these might be a in better shape, too.
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Jun 18, 2021 15:48
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stellers bae posted:How does this one look? Going to check it out later today: https://www.redfin.com/WA/Port-Ange...tm_content=link There's so much RealtorVision going on it's hard to get a sense of the size of anything. It's 1300 sq. ft, so I'd be concerned about how functional each room is. Some could be little more than closets.
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Jun 18, 2021 16:32
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Doing final walk through in a few hours. Anyone got some quick tips? The home owner replaced a pipe in the crawl space so I have to get down and dirty to see if he did it right. Other than that, just make sure they didn't take up suburban alpaca farming in the last month, right?
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Jun 18, 2021 16:34
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stellers bae posted:How does this one look? Going to check it out later today: https://www.redfin.com/WA/Port-Ange...tm_content=link If that is your vibe it looks gorgeous. There is no privacy in the loft bedroom(s?). 1300sqft means the size is super exaggerated, but 2/1 means that it has a decent shot of being cozy but not cramped. If they've used the space smartly it should be nice to live in, but I wouldn't want to be trapped in with kids.
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Jun 18, 2021 16:48
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Is it just me or does that look like it'll be a giant echo chamber where pretty everyone can hear whatever is happening any where in the home?
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Jun 18, 2021 16:54
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