With the amortization advantage of a 10 year, coupled with the extra I'm paying (ie, keep paying what I already was before), I'm putting over a grand a month towards principle on a $1500 payment.
The new loan saves us $50k over the old loan, and paying early saves another $5k. So, over the course of the next decade, I've gotten a "free" Porsche Cayman.
We will own it free and clear 13 years after the original purchase.
I did a refi through PNC and there were no costs involved at all. None. You'll have to ask my wife for the percentages, I was in the garage working on a Jet Ski at the time.
mguar wrote: In reply to z31maniac: One bit of friendly advice? Don't go for the 10 year. instead make additional payments to the principle.. You can pay it off in 10 years or maybe less if your income allows. But if something bad should happen you have the flexibility to make the smaller 15 year payments.. Bad? Like divorce, loss of job, or serious illness. The top reasons bankruptcy is declared.. It happens a lot more than most believe..
Meh.
I agree on not overextending yourself. I think that has more to do with the purchase price of the house than the flavor of financing.
<---- Lost 2/3 of our income for 6 months and never were late on a payment. We bought a house that cost 1.5x our income give or take. A lot of people use 3.5x as a rule of thumb.
tuna55 wrote: We did a refi three years ago, 15 year. We just refid again, 10 year. We went from 4.75 to 2.75% for a total life of loan difference of around 30k. Everyone, go do it now.
Who did you go through? We're right at 4.75 and should re-fi. Our bank offers 2.75 on the 10 year but my experience buying the house was pretty rough .. maybe I should just suck it up though.
Too much house will kill you financially but so will not enough. Buying a cheap house in a bad 'hood can look good at first, but it can also be an expensive lesson in poor judgment. It can become a millstone around your neck that you can't unload.
It's always good to be careful of the area etc but it's best not to overextend yourself. Always having to have the most impressive house, fanciest car etc is how many people wind up one paycheck from disaster.
There was a TV ad a few years ago with some dude on a riding mower who was talking about his big house his fancy car his etc etc etc and he said 'Please kill me' at one point. While funny, the ad also pointed out the ways people get themselves in huge finacial trouble.
DILYSI Dave wrote:mguar wrote: In reply to z31maniac: One bit of friendly advice? Don't go for the 10 year. instead make additional payments to the principle.. You can pay it off in 10 years or maybe less if your income allows. But if something bad should happen you have the flexibility to make the smaller 15 year payments.. Bad? Like divorce, loss of job, or serious illness. The top reasons bankruptcy is declared.. It happens a lot more than most believe..Meh. I agree on not overextending yourself. I think that has more to do with the purchase price of the house than the flavor of financing. <---- Lost 2/3 of our income for 6 months and never were late on a payment. We bought a house that cost 1.5x our income give or take. A lot of people use 3.5x as a rule of thumb.
Thankfully for us, a combination of good salaries and low-cost housing means the purchase price of our house is only about 70% of our yearly income.
We could pay all the bills and then some on the wife's salary alone (granted our going out/vacation habits would have to stop), so while it is a real concern, it's not something I'm too worried about.
We bought the place we're in now (aka the machine shop and giant garage w/ the nice mid-century modern rambler project house conveying with the sale) while we still owned house #1, so we held the jumbo note on this joint plus the 30-fixed on #1. Actually, we used the practically free money home equity line from #1 to fund the down payment on #2.
When #1 sold, we payed off the note and home equity line and banked a pile of cash the likes of which we'd never believed we'd have without a favorable lottery outcome.
Recently we re-fi'd # 2 @ 3.5% for a 30 fixed which we generally pay down at about a 20 year rate. We also plowed some of the pile of cash in to get the note below the jumbo cap.
A nice feature was the mortgage company sent a nice lady who showed up @ 0900 on a Saturday morning with a huge stack of papers and 3 pens and did the closing at the dining room table over coffee.
Our monthly on the new place which cost $600-a-little K is not much bigger than what we were paying on the old place which was $250K in 2000.
dculberson wrote:tuna55 wrote: We did a refi three years ago, 15 year. We just refid again, 10 year. We went from 4.75 to 2.75% for a total life of loan difference of around 30k. Everyone, go do it now.Who did you go through? We're right at 4.75 and should re-fi. Our bank offers 2.75 on the 10 year but my experience buying the house was pretty rough .. maybe I should just suck it up though.
Local bank here called Countybank - they sold our mortgage to BBT last time after about six months, but the guy had us bring in the kids in his office at about 6 pm and let them run crazy while we signed papers. This time, he has all of our info, he's just mailing everything to us. Doesn't get much more convenient than that.
mguar wrote: In reply to z31maniac: There are some people who can afford the things they want but try to save on them.. So instead of having a nice home in a good neighborhood they raise their children where left over teachers go for a paycheck until retirement (and the schools reputation reflects it) They may lose a good job because their too cheap car isn't reliable enough to get them to work in a timely manner every day.. They buy the cheap food and suffer from periodic food poisoning. Or gain too much weight and suffer other problems.. They don't have good health insurance and when someone get's sick (someone always gets sick) they go broke due to the bills.. Overspending is the #7 reason for bankruptcy's. Illness, loss of job, and divorce are the first 3
For someone who is constantly bitching about how bad you've managed to berkeley up your own life, you sure can be a condescending shiny happy person to others about how they are running theirs.
Has anyone with E36 M3 for credit done this yet? Mine wasn't good enough for our credit union to approve us so I could use some suggestions on who to try next.
Wally wrote: Has anyone with E36 M3 for credit done this yet? Mine wasn't good enough for our credit union to approve us so I could use some suggestions on who to try next.
Depends on how bad it is. What used to be called sub-prime lending has essentially evaporated. Below 620, you are pretty much SOL. 620 to about 680 - some lenders will and some won't, depending upon a multitude of other factors.
Note that the lender will likely get reports from the three major bureaus and use the middle score. If there are two borrowers, they will use the lower of the two middle scores.
Exceptions to this are few and far between, mostly limited to portfolio lenders who will consider a long-standing relationship and/or other significant compensating factors. Even then, regulatory scrutiny and uncertainty about the CFPB agenda will limit how far they color outside the lines.
Work on getting the scores up - few in the industry foresee a dramatic increase in rates anytime soon.
Dude, myself and I'll bet most others are tired of reading your incessant drivel.
I can assure you that you have NOTHING to say about those evil doers in the banks that you have not already said.
Give it a rest for cripes sake.
mguar wrote: In reply to z31maniac: There are some people who can afford the things they want but try to save on them.. So instead of having a nice home in a good neighborhood they raise their children where left over teachers go for a paycheck until retirement (and the schools reputation reflects it) They may lose a good job because their too cheap car isn't reliable enough to get them to work in a timely manner every day.. They buy the cheap food and suffer from periodic food poisoning. Or gain too much weight and suffer other problems.. They don't have good health insurance and when someone get's sick (someone always gets sick) they go broke due to the bills.. Overspending is the #7 reason for bankruptcy's. Illness, loss of job, and divorce are the first 3
WTF does this have to do with what you were replying to?
1988RedT2 wrote: In reply to poopshovel: I went through CapCenter (www.capcenter.com). We did 15 years at 4.0%, but that was a couple years ago.
they'll only do VA and NC.
mguar wrote: In reply to z31maniac: One bit of friendly advice? Don't go for the 10 year. instead make additional payments to the principle.. You can pay it off in 10 years or maybe less if your income allows. But if something bad should happen you have the flexibility to make the smaller 15 year payments..
This. And you usually will save even more money if you do it that way. I'm currently on track to pay off a 30 year loan in 15.
bravenrace wrote:mguar wrote: In reply to z31maniac: One bit of friendly advice? Don't go for the 10 year. instead make additional payments to the principle.. You can pay it off in 10 years or maybe less if your income allows. But if something bad should happen you have the flexibility to make the smaller 15 year payments..This. And you usually will save even more money if you do it that way. I'm currently on track to pay off a 30 year loan in 15.
It really depends on the interest rate, if you can save 1% on the interest and are going topay it off in that amount of time anyway I'd dake to 1% off.
tuna55 wrote:dculberson wrote:Local bank here called Countybank - they sold our mortgage to BBT last time after about six months, but the guy had us bring in the kids in his office at about 6 pm and let them run crazy while we signed papers. This time, he has all of our info, he's just mailing everything to us. Doesn't get much more convenient than that.tuna55 wrote: We did a refi three years ago, 15 year. We just refid again, 10 year. We went from 4.75 to 2.75% for a total life of loan difference of around 30k. Everyone, go do it now.Who did you go through? We're right at 4.75 and should re-fi. Our bank offers 2.75 on the 10 year but my experience buying the house was pretty rough .. maybe I should just suck it up though.
Did you have to pay any points? 53rd is offering 2.75 but with .875 points.
dculberson wrote:tuna55 wrote:Did you have to pay any points? 53rd is offering 2.75 but with .875 points.dculberson wrote:Local bank here called Countybank - they sold our mortgage to BBT last time after about six months, but the guy had us bring in the kids in his office at about 6 pm and let them run crazy while we signed papers. This time, he has all of our info, he's just mailing everything to us. Doesn't get much more convenient than that.tuna55 wrote: We did a refi three years ago, 15 year. We just refid again, 10 year. We went from 4.75 to 2.75% for a total life of loan difference of around 30k. Everyone, go do it now.Who did you go through? We're right at 4.75 and should re-fi. Our bank offers 2.75 on the 10 year but my experience buying the house was pretty rough .. maybe I should just suck it up though.
Yes, the closing costs with those costs included was something like $3600, but keep in mind that that dollar amount was figured into my numbers which I presented. My closing costs without them was $1000 but it was worth the points (less total paid over the same term = less monthly) to do it that way, even though I was financing the costs.. just a big difference going from 4.75 to 2.75.
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