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Then again, my current loan is >$200k and my PMI is $60/mo, so I'm not sure there's a general rule here. Edit: Not FHA
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Nov 7, 2009 19:21
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I included no evidence whatsoever and I already got my check... E: Not suggesting fraud here, I really did buy a house thank you
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Nov 19, 2009 23:29
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Gotcha. As usual my info is out of date. I was actually pretty surprised I didn't have to provide some kind of documentation.
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Nov 20, 2009 02:36
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The appraisal on the house I just bought came in 5% below the offer at first, and no one could understand why. Turned out there was a typo on the form. Good comps, good calculations, appraiser just pulled the wrong number out of his rear end somewhere when he was filling out the final box. Good luck dealing with yours - does sound like your appraiser had his head up his rear end so maybe it will work out.
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Dec 23, 2009 00:58
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I would probably jump, especially if you could get to 80% LTV and dispense with PMI after a year. Example from amerisave.com today: the difference between an 80% loan and 90% loan was 0.3 points at a 5% rate - you couldn't even get a full 1/8th less on the rate with the higher downpayment.
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Dec 26, 2009 15:30
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People apparently have these ideas that changing your payment schedule can make magic happen, but it all boils down to this: pay more towards principal, and you'll pay less in interest over time. 26 biweekly payments is an entire extra month's payment each year compared to 12 monthly payments. But you can get the exact same effect by just paying a little more towards principal each month. That's probably easier, since most banks seem to be set up for it these days. Edit: See if you can pay enough extra principal each month to get it paid off in 15 years. If you didn't stretch when you bought the place, you might be able to swing it, and that would cut your total interest payments more or less in half. Play with this: http://www.mtgprofessor.com/Calculators/Calculator2a.html slap me silly fucked around with this message at 20:13 on Jan 10, 2010 |
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Jan 10, 2010 20:10
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Furthermore, whether it works out the way you describe depends on when and how the bank credits your payments. For instance, I made an extra payment on November 12 but my bank calculated the December interest as though it had been deposited Nov 1. I'm guessing if I had deposited it after the 15th, they would have credited it to December instead. It is far easier for me to add a regular amount each month, and then write an occasional extra check if I feel so inclined, than to mess with a non-monthly schedule.
slap me silly fucked around with this message at 16:07 on Jan 11, 2010 |
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Jan 11, 2010 16:04
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Ha, and I thought it was annoying that I have to badger the title company to get more money from the seller since the property taxes went up this year, but their pro-rated payment at closing was based on last year's amount.
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Jan 12, 2010 19:38
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I filed in September or so, so I was lucky. Ended up filing on paper anyway thanks to a Turbotax hiccup or something. Sucks to be you guys... seems like appliance dude might have jumped the gun a little, though, if he can't float it for 4 months.
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Jan 16, 2010 21:55
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I notice Pen Fed is offering a 5/5 ARM at 4.0%. Worst case scenario on that is 6% in years 6-10, 8% in years 11-15, 9% thereafter. I have a 30-year mortgage that I'm paying on the 15-year schedule, but my minimum payment is already 25% of my gross income and I wasn't comfortable without the flexibility. But 3/4 of a point? Wow.
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Jan 20, 2010 03:21
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Agreed. Moving loving sucks. We did it over a month and it still loving sucked. We did it ourselves - next time I am hiring someone and I bet it still will loving suck.
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Jan 23, 2010 18:34
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Leperflesh posted:So yeah, plan for all that poo poo because it'll happen. Haha, yeah, I spent $2k fixing a roof leakage problem that had somehow gone undiscovered by multiple inspectors and two owners for 7 years, yet we discovered it within a month. Edit: VVVV Wow... slap me silly fucked around with this message at 21:34 on Jan 23, 2010 |
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Jan 23, 2010 21:14
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Hmm, feelin' pretty good about my own experiences now. What did he chop his thumb with?
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Jan 25, 2010 08:07
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Yeah, that's how it worked during the bubble, right? And that didn't contribute to the insanity at all... When the house I bought was appraised, the appraiser did not consult with me or any agents. Instead he just looked at comp sales. He came up with a price just over my offer. Er, that is after the typos were fixed that made it come in 5% low, nice little hiccup that was.
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Jan 29, 2010 20:10
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I misunderstood you to say that the appraiser would normally use the offer price as evidence of the market price. Otherwise, my point is that appraisals during the bubble were not always made independent of the parties to the transaction, but there might have been significant long-term benefit all around if they had been.Leperflesh posted:Did you know money is just paper with ink on it? This is why all my transactions are carried out in purestrain gold slap me silly fucked around with this message at 23:30 on Jan 29, 2010 |
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Jan 29, 2010 22:20
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A 15-year old roof with significant damage and evidence of poor maintenance probably needs replacement now or soon. Why not just counteroffer for the seller to replace the roof or provide additional $4500 at closing? They accepted an offer for $124k but didn't disclose the roof condition which they are surely aware of at some level - they should be expecting this. If you buy it as is, sounds like you're going to replace the roof in the next year or three due to insurance demands or water leaks anyway. I wouldn't rely on some unrelated HOA covenant technicalities to get you out of a roof problem, and I wouldn't go with the $119k/no repairs option unless you're willing to pay for the new roof yourself soon after you move in. $4500 sounds cheap for a roof by the way. If the market value is really $124k and it needs a new roof for $5k, they should eventually find someone who will pay them $119k without requiring roof repairs. But maybe they can't afford to wait any longer.
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Feb 7, 2010 19:06
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Strict 9 posted:Got my refund! About three months to the day. The interest clock would have been started in April (I think?), so really 10 months. I got $100ish in interest, but I got the check in October. Still, I feel a little gypped there, hmm. Anyway it seems they are using ~3% annual rate?
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Feb 9, 2010 05:30
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What is that, some sort of commission kickback program? I'd be worried it would conflict with USAA's, if you're using it ("Mover's Advantage"). Or maybe not since it's on the seller's end.
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Feb 11, 2010 06:34
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I had a good experience with them too. But next time I will go straight to the agent and just negotiate a lower commission - that cashback prize comes straight out of the agent's commission, and USAA gets a chunk. You could both come out ahead by splitting the difference.
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Feb 12, 2010 16:12
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dwoloz posted:I was back in today with the pest inspector. He found rot where the addition meets the original structure. The roof slope sends water right to this point and there was likely inadequate flashing on the roof. Haha, this is exactly what happened with my house, only nobody caught it. At least it only cost me $2k to fix. Seemed like a lot at the time. Good luck if you decide to go for it.
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Feb 18, 2010 04:02
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Is the guy a mortgage broker? If you were less than 30 days late on a single payment, he's probably jerking you around so you won't ask questions when he comes to you with a high rate later. You can get some no-commitment pricing info for your specific credit score here: http://mtgprofessor.com/A%20-%20UMLs/introducing_upfront_mortgage_lenders.htm stash posted:Also, the PMI rates should change at 5, 10, and 15% downpayment. If you pay 10% down, you should get a better PMI rate than if you only put down 5%. I'm not sure if this changes as you pay the house off, or only on the downpayment. Pretty sure it only depends on the down payment. Can you believe my PMI rate is actually less than what I was quoted... USAA 
slap me silly fucked around with this message at 04:27 on Mar 5, 2010 |
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Mar 5, 2010 04:24
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Verloc posted:B) Something that should be put off until we can further reduce our debt and/or increase savings. You'd need to save $1000/mo until September just to manage a 5% down payment and closing costs, and more like $2500/mo to have a reasonable cash buffer after the purchase. You'd be paying substantial interest on that money because it won't be going toward your debt - in the case of the credit cards, possibly outrageous interest. I suggest you pay off the debts at maximum speed and reconsider this in a year.
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Mar 5, 2010 22:25
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That is good - your debt could be gone altogether in less than a year, and you're already on track to making it happen. You're lucky to have the income to recover so quickly. But in buying a house, you should plan to make a decent down payment plus have a stack of cash left over. Not only do you need the emergency fund, but you could easily spend $K on repairs, maintenance, lawn mowers, etc. Car payments and student loan payments aren't impossible with mortgages, and people do it. But the less of that you have the less you'll spend on interest and the more comfortable you'll be. And you have a great opportunity right now to put those loan payments behind you for good.
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Mar 5, 2010 23:19
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"Appalled" my rear end, expert work is expensive. That sounds pretty reasonable to me. You should be "appalled" that they didn't taken care of this basic stuff while they owned it, and offer them $100 off.
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Mar 19, 2010 18:01
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My home warranty sucks and wouldn't be any use for a real problem. I think that's typical. On the other hand, $850 in the pocket is nothing to sneeze at.
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Mar 19, 2010 23:05
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Just to bolster that, I had to make an unexpected $2k repair right after I moved in, and it wasn't anywhere close to being covered by the warranty. SO
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Mar 20, 2010 04:49
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Sounds like he's more or less on the ball, so I'd give it a couple of weeks for him to get around to it and everything to go through. At that point, just fire off a quick email if you haven't gotten it yet.
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Mar 30, 2010 18:40
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I hate landlords as much as anybody, but jesus. Some landlords you have to beat with a stick to get your deposit back inside of 6 months. This guy on the other hand is responsive to email and sounds perfectly reasonable. The 30 day period, which may or may not actually apply here, isn't even over for 4 days yet, and he's still in his promised "next few days" window as well. In my state, it's the tenant's responsibility to pay rent when due, but landlords have to accept it up to 5 days late with no penalty charges. It does cut both ways.
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Mar 30, 2010 20:45
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Looks like you can get 5.25% at 0 points, more or less, yeah. What is he charging you for 5.35%? All else equal, the difference between 5.25% and 5.35% is $7/mo: http://www.mtgprofessor.com/Calculators/Calculator11a.html
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Apr 1, 2010 19:57
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I think the break-even point on that is just a couple of years even if you have to pay total of half a point (4 extensions). http://mtgprofessor.com/Calculators/Calculator11a.html
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Apr 7, 2010 17:14
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It's pretty hilarious, isn't it. When I was a kid, four of us lived in a ~900 square foot uninsulated four-room one-holer until I was 14 and it was perfectly fine. Now that I have a salary I live with one other person in 1400 sf and think of it as a "small house".
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Apr 12, 2010 15:44
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It's a similar situation with new condos where I live - half or more going unsold even at steep discounts. They just built too many too fast during the boom. Lots of buyers backing out and developers going bankrupt.
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Apr 14, 2010 17:16
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Arkane posted:Also for USAA members, how have you found their mortgage rates? I'm not in the military or a veteran, so VA isn't an option. My mom said that USAA never has the best rates when they shop (and my parents have moved a whole bunch). I'm going to shop around, but I would definitely prefer USAA because I do everything with them. I poked around a bit. What I found was that USAA generally ended up with equivalent or cheaper cost for a particular rate. USAA's fees are rock-bottom, and don't forget that any broker is going to charge you an extra point or two to get their rate. Basically, be sure you account for interest rate, all points, and fees. Also be aware that USAA will probably sell your mortgage on to somebody else right away - US Bank in my case. My loan officer did go on vacation in the middle of the process, but I didn't have any problem getting hold of someone when needed. I went here for comparison shopping: http://mtgprofessor.com/A%20-%20UMLs/introducing_upfront_mortgage_lenders.htm
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Apr 21, 2010 16:25
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^^^ Jesus, what idiots. Maybe direct them towards some of the online rent vs. buy calculators so they can see how much money they will throw away when they own a house - but it sounds like they've made up their minds. One more foreclosure on the immediate horizon. How the hell did they find a loan??Arzakon posted:If instead you paid every 2 weeks (26 payments per year instead of 24) you would probably be finished about 10 years sooner, making only 260 payments over 20 years instead of 360 over 30. This is true but likely still more trouble than it's worth. Just increase each monthly payment by 1/12 (or more) - there's probably even a little box for additional principal on the statement. It doesn't really matter much when during the month it hits the account. Any prepayment service you pay extra for is a loving ripoff. slap me silly fucked around with this message at 07:34 on May 6, 2010 |
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May 6, 2010 07:32
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I doubt you can get a home equity loan for more than $20k if you can get one at all - don't they usually have a maximum 80% LTV? If you can do that, and proceed to pay it off in three years, you're looking at saving a total of $650. Not nothing, but maybe not worth a lot of trouble either. All you people with sub-$200k mortgages make me jealous. I like my house and yard 5 minutes from downtown though.
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May 30, 2010 05:44
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I bought my house just under a year ago, right when there was a little bump in rates, so I'm at 5 3/8. Tonight I applied for a refinance at 4 3/8. Wish me luck...
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Jul 3, 2010 05:44
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I didn't have a lawyer either, and you can be sure I was looking carefully for the correct language regarding contingencies. Especially that one! I also checked for the owner's title insurance (the required title insurance only protects the lender). Everybody was using state standard boilerplate. I can't recall what my agent said about the legal details, but in general she knew stuff but didn't really know it, so if I had gone in not knowing what to look for I guess it could have been a problem.
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Jul 8, 2010 20:44
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A mortgage broker is not "free", because he gets a cut of the origination fees. The idea is that a broker has better market access than you, enough to make up for the extra cost. There are good and bad ways to take advantage of this: http://www.mtgprofessor.com/A%20-%20Upfront%20Mortgage%20Brokers/why_select_an_upfront_mortgage_broker.htm. In my case, I found a bank that would charge me only $600 plus points for an excellent rate and I wasn't confident a broker could do better. Lender Services: this seems to be mostly the upfront cost of the FHA mortgage insurance ($8k). Title insurance: There is insurance for the lender and insurance for the buyer. The seller paid for both of these in my case - what's usual may differ from state to state. Anyway the price for each was about 0.5% of the loan amount, which is in line with what you posted. The rest of your title stuff is attorney fees (<$200 for me!) Start talking to an insurance company so you can set your own policy terms and get your own estimate of the price for that. Who knows whether the estimate on your prequal letter is realistic.
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Jul 9, 2010 19:23
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Haha, I'm (maybe) about to refinance my 10-month old loan at 4.375%, also 1% lower. To calculate the break-even point, look at the current amortization and the new amortization side by side. The refinancing cost either gets subtracted from the current loan balance or added to the new loan balance, depending on whether you pay up front or roll it into the loan. Then just note when the loan balance under the new scheme drops below the balance under the old scheme. That gives you a better approximation of the break-even time than the old "divide the cost by the amount saved per month" trick. Be sure you account correctly for extra principal payments; cash accumulation due to the lower payment on the new loan; and the increase in taxes (you potentially get a smaller tax deduction with the refinance because you pay less in interest). Also don't include escrow payments and prepaid interest as upfront costs.
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Jul 14, 2010 22:40
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Just to give you a feeling, I can estimate the break-even point 3 ways: Upfront cost divided by reduction in monthly payment: 25 mo Comparing amortization schedules with costs rolled into loan: 30 mo Comparing schedules but also accounting for tax at my marginal rate: 42 mo That's all assuming I continue to make the same payment I make now. I'm pretty sure I'll be here another 4 years so I'm definitely leaning towards doing it. My point really is that it matters a lot how you do the calculation and the easy estimate that's suggested all over the internet can be pretty wrong.
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Jul 14, 2010 22:50
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