Deleted
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Post by Deleted on Apr 8, 2019 16:04:11 GMT -5
But, you're only getting half of that if splitting with ex. $600/month for what? 10 years? I know he would looove to have some money now. So if I did it - I would ask him to split $600! But what bothers me is my $180 grows into $225 and my $130 goes down to $50... It would make sense if I could invest and get something out of it...but I am not like that. So... What's with the "my"? Isn't it that "our" $180K grows and "our" $130K goes down? Unless you are buying him out, he still owns half the house. If he ends up getting sued, bankrupt, or going on Medicaid at some point, you will learn that the hard way.
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oped
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Post by oped on Apr 8, 2019 16:12:36 GMT -5
Are your taxes insurances, etc. part of your mortgage? Or do you pay those separately?
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tloony
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Post by tloony on Apr 8, 2019 19:40:55 GMT -5
Are your taxes insurances, etc. part of your mortgage? Or do you pay those separately? All included
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oped
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Post by oped on Apr 8, 2019 19:44:49 GMT -5
Cool.
Can you shed some light on the question people had about this loan numbers?
Are you getting 75k? Or 45k?
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tloony
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Post by tloony on Apr 8, 2019 20:00:39 GMT -5
Cool. Can you shed some light on the question people had about this loan numbers? Are you getting 75k? Or 45k? $75 Who said $45k and why? When?
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oped
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Post by oped on Apr 8, 2019 20:37:01 GMT -5
Well you said your mortgage was going from 180 to 225. That would be 45k... is it instead rising to 255k?
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laterbloomer
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Post by laterbloomer on Apr 8, 2019 20:54:51 GMT -5
If I was you I would keep the mortgage you have now and suck it up and let him have half the equity upon sale or at a later date. You might as well let him make money off of it as the bank and you do have a good mortgage now.
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hoops902
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Post by hoops902 on Apr 9, 2019 7:50:28 GMT -5
Well you said your mortgage was going from 180 to 225. That would be 45k... is it instead rising to 255k? I'm guessing 260 (or rather I guessed on page 1). Given the equity numbers, it sounds like there's probably 5k in closing costs getting rolled in. I was assuming the mortgage likely went to 260 (she said her new equity was 50k and house was valued at 310k).
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 9, 2019 7:51:13 GMT -5
Just talked to Cardinal mortgage. Considering I have $130k in equity in $310k house They giving me $75k which brings my $1400/ mo pmt to $2K Equity left $50k Mortgage from $180k to $225k Rate from 3% to 4.5% I am not sure what am I getting into. will you be able to pay the new mortgage long-term, or is this just a stop gap to keep you in the house longer?
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 9, 2019 7:53:38 GMT -5
If this is only about the buyout of xh, if you expect the house to increase in value you should buy him out now, but only if you can keep the house long enough to realize that gain.
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hoops902
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Post by hoops902 on Apr 9, 2019 7:56:57 GMT -5
If this is only about the buyout of xh, if you expect the house to increase in value you should buy him out now, but only if you can keep the house long enough to realize that gain. Or even if you don't expect it to increase in value...if you can get away with giving him less than 50% of the equity like she is now (sounds like she's giving him less than 1/3 of the total equity), that's a pretty good reason to do it as well (to your point, only if you can keep the house though and not cripple yourself financially to do so).
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Post by Deleted on Apr 9, 2019 8:28:29 GMT -5
Or even if you don't expect it to increase in value...if you can get away with giving him less than 50% of the equity like she is now (sounds like she's giving him less than 1/3 of the total equity), that's a pretty good reason to do it as well (to your point, only if you can keep the house though and not cripple yourself financially to do so). Like everyone else, I'm having a problem following the numbers, but I agree that if she shares any of the $75K with her STBX (soon-to-be-Ex) she needs a written agreement on what % of the house he'll get when it's sold and it should be less than 50% since whatever she gives him is basically a share of his equity. I hope there's a good lawyer involved somewhere. I'm also thinking that if tloony can afford to come up with this extra $400/month maybe she needs to use that money instead to build up savings and maybe even take a nice vacation later, rather than committing to a higher monthly mortgage payment.
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hoops902
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Post by hoops902 on Apr 9, 2019 8:51:19 GMT -5
Or even if you don't expect it to increase in value...if you can get away with giving him less than 50% of the equity like she is now (sounds like she's giving him less than 1/3 of the total equity), that's a pretty good reason to do it as well (to your point, only if you can keep the house though and not cripple yourself financially to do so). Like everyone else, I'm having a problem following the numbers, but I agree that if she shares any of the $75K with her STBX (soon-to-be-Ex) she needs a written agreement on what % of the house he'll get when it's sold and it should be less than 50% since whatever she gives him is basically a share of his equity. I hope there's a good lawyer involved somewhere. I'm also thinking that if tloony can afford to come up with this extra $400/month maybe she needs to use that money instead to build up savings and maybe even take a nice vacation later, rather than committing to a higher monthly mortgage payment. Except it sounds like whatever equity they are pulling out now, they're just splitting 50/50, so he'd still have 50% of the equity remaining in the house.
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azucena
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Post by azucena on Apr 9, 2019 9:00:11 GMT -5
Just talked to Cardinal mortgage. Considering I have $130k in equity in $310k house They giving me $75k which brings my $1400/ mo pmt to $2K Equity left $50k Mortgage from $180k to $225k Rate from 3% to 4.5% I am not sure what am I getting into. will you be able to pay the new mortgage long-term, or is this just a stop gap to keep you in the house longer? It's likely about "free" money for a vacation that she deserves.
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Post by Deleted on Apr 9, 2019 9:26:54 GMT -5
If I didn't have good credit and was already struggling on my income, I would not put myself in a situation where I'm more at risk of losing my house. The only way I would even entertain taking equity out in your situation would be if it was the only way I could get rid of the ex's interest in the house and secure it as only mine. And I'd still only do it if I was absolutely sure I could afford the new payment. But I'm not even sure if that would really work, it doesn't seem like you would qualify to refinance by yourself, so he would have to also sign for this new loan, meaning his name would still be attached to the house legally, right?
It would probably be a simpler and better business decision (though emotionally tough) to just sell the house, split the money from the sale and use your part to start over somewhere else. Or sit on the money until you are in a better position to buy another house on your own.
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NoNamePerson
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Post by NoNamePerson on Apr 9, 2019 10:33:59 GMT -5
I think it's a marvelous idea so go for it post haste. See absolutely no future problems so it is a win win for OP!
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tloony
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Post by tloony on Apr 9, 2019 11:54:51 GMT -5
Well you said your mortgage was going from 180 to 225. That would be 45k... is it instead rising to 255k? No it’s always been to $225 unless I made typo. It haven’t been $255...sorry
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oped
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Post by oped on Apr 9, 2019 11:57:11 GMT -5
I'm just not sure how you can borrow 75k and only increase your mortgage by 45k?
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tloony
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Post by tloony on Apr 9, 2019 11:59:50 GMT -5
If I didn't have good credit and was already struggling on my income, I would not put myself in a situation where I'm more at risk of losing my house. The only way I would even entertain taking equity out in your situation would be if it was the only way I could get rid of the ex's interest in the house and secure it as only mine. And I'd still only do it if I was absolutely sure I could afford the new payment. But I'm not even sure if that would really work, it doesn't seem like you would qualify to refinance by yourself, so he would have to also sign for this new loan, meaning his name would still be attached to the house legally, right? It would probably be a simpler and better business decision (though emotionally tough) to just sell the house, split the money from the sale and use your part to start over somewhere else. Or sit on the money until you are in a better position to buy another house on your own. Ok EVERYBODY!!! Selling the house is NOT a ‘best’ desicion’ My mortgage is equal to appartment cost. I saidnit already. It is NOT a good desicion.
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tloony
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Post by tloony on Apr 9, 2019 12:06:02 GMT -5
I'm just not sure how you can borrow 75k and only increase your mortgage by 45k? They reducing my $130k equity to $50k So it’s your $80k already! Plus they upping my $180k to $225 which is another $45k So they gain $45k So cost of them giving me $75k will be $45k
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Post by The Walk of the Penguin Mich on Apr 9, 2019 12:11:29 GMT -5
I'm just not sure how you can borrow 75k and only increase your mortgage by 45k? They reducing my $130k equity to $50k So it’s your $80k already! Plus they upping my $180k to $225 which is another $45k So they gain $45k So cost of them giving me $75k will be $45k And I thought common core math was complicated.....
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tloony
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Post by tloony on Apr 9, 2019 12:16:46 GMT -5
They reducing my $130k equity to $50k So it’s your $80k already! Plus they upping my $180k to $225 which is another $45k So they gain $45k So cost of them giving me $75k will be $45k And I thought common core math was complicated..... Ok. Haha. Let’s cincentrate please.
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oped
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Post by oped on Apr 9, 2019 12:23:55 GMT -5
I'm sorry, but that isn't how it works.
As i understand, right now you owe 180k on a house that is worth 310k. That means when you take the 310 value and subtract the 180 you owe, you are left with 130k in equity.
If you do the new loan and take out 75k, that means you would then owe 255k on a house worth 310k and so your equity, 310-255, would be 55k.
Now if it is true that you are reducing your equity to 50k... that means your new loan is actually going to be 260k (310-260 = 50k), So your new mortgage would be 260k on a house worth 310k meaning equity of 50k.
This means adding an additional 80k to your mortgage which would account for the 75k to you and probably 5k in fees as someone said.
The first and most important thing you need to do is to call the lender and confirm your numbers so you completely understand the details before you make a decision.
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hoops902
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Post by hoops902 on Apr 9, 2019 12:47:29 GMT -5
I'm just not sure how you can borrow 75k and only increase your mortgage by 45k? They reducing my $130k equity to $50k So it’s your $80k already! Plus they upping my $180k to $225 which is another $45k So they gain $45k So cost of them giving me $75k will be $45k This simply can't be possible. Your equity is going from 130k to 50k...that means you are borrowing 80k from them. So if you owe them 180k today, you'd have to owe them 260k after this is done. If they reduce your equity by 80k and increase your principal by 45k, that would mean they just gave you 35k out of their pocket (not from equity, just out of their pocket as a gift).
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NoNamePerson
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Post by NoNamePerson on Apr 9, 2019 13:05:39 GMT -5
And I thought common core math was complicated..... Ok. Haha. Let’s cincentrate please. I cincentrate every afternoon at 5pm!
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Post by Deleted on Apr 9, 2019 14:16:18 GMT -5
I'm just not sure how you can borrow 75k and only increase your mortgage by 45k? They reducing my $130k equity to $50k So it’s your $80k already! Plus they upping my $180k to $225 which is another $45k So they gain $45k So cost of them giving me $75k will be $45k Man, I WISH that was how home equity loans worked! I would go borrow 150K against my house, increase my mortgage only 90K, turn around and put that 150K on my mortgage and only owe 45K instead of 109K! Brilliant!
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hoops902
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Post by hoops902 on Apr 9, 2019 14:19:03 GMT -5
They reducing my $130k equity to $50k So it’s your $80k already! Plus they upping my $180k to $225 which is another $45k So they gain $45k So cost of them giving me $75k will be $45k Man, I WISH that was how home equity loans worked! I would go borrow 150K against my house, increase my mortgage only 90K, turn around and put that 150K on my mortgage and only owe 45K instead of 109K! Brilliant! Why stop there? You could refinance it daily until you had all the money in the world!
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Apr 9, 2019 14:22:56 GMT -5
They reducing my $130k equity to $50k So it’s your $80k already! Plus they upping my $180k to $225 which is another $45k So they gain $45k So cost of them giving me $75k will be $45k This simply can't be possible. Your equity is going from 130k to 50k...that means you are borrowing 80k from them. So if you owe them 180k today, you'd have to owe them 260k after this is done. If they reduce your equity by 80k and increase your principal by 45k, that would mean they just gave you 35k out of their pocket (not from equity, just out of their pocket as a gift). Of course it's a gift! The bank luvs looney and will eagerly give her a bonus $35k.
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HoneyBBQ
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Post by HoneyBBQ on Apr 9, 2019 14:29:57 GMT -5
I'm sorry, but that isn't how it works. As i understand, right now you owe 180k on a house that is worth 310k. That means when you take the 310 value and subtract the 180 you owe, you are left with 130k in equity. If you do the new loan and take out 75k, that means you would then owe 255k on a house worth 310k and so your equity, 310-255, would be 55k. Now if it is true that you are reducing your equity to 50k... that means your new loan is actually going to be 260k (310-260 = 50k), So your new mortgage would be 260k on a house worth 310k meaning equity of 50k. This means adding an additional 80k to your mortgage which would account for the 75k to you and probably 5k in fees as someone said. The first and most important thing you need to do is to call the lender and confirm your numbers so you completely understand the details before you make a decision. Please stop acting like numbers are a real thing you can figure out. It's so non-productive.
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NoNamePerson
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Post by NoNamePerson on Apr 9, 2019 14:39:58 GMT -5
Aside from all the divorce stuff.. Have you dealt with Cardinal Financial before? Do you trust them? It seems like it's hit or miss with the quality of service they provide. And that would worry me a little bit. I admire your ability to take on risk. Normal rule of thumb is to have a mortgage that is 2-2.5x your yearly gross income. I've had my caffeine, so I can math pretty well. Just guessing, following that rule of thumb, your mortgage "should" be about 75K. 225K is a WHOLE lot bigger than 75K. Just out of curiosity I googled Cardinal Financial reviews. Not sure I would deal with them based on a lot of reviews and BBB complaints but then I don't have money to throw away when the sh## hits the fan
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