chiver78
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Post by chiver78 on Jul 7, 2020 8:37:25 GMT -5
I won't be able to keep up that pace once I have a mortgage payment again, but I can absolutely do it for now while I'm in this rental! I'll also have a nice chunk for the weeks between not having to pay last month rent here and waiting for the mortgage payments to start after closing on a place. I knew this would go quickly once I got enough of a boost from the house sale windfall. I just needed to get some traction in paying stuff down. I can breathe again.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Jul 7, 2020 9:11:16 GMT -5
UPDATE! Rukh O'Rorke 7/7/2020 $104,090.57 (6/29/2019 $126,041.86) Debt | 12/20/19 | 01/07/20 | 02/06 | 03/06/20 | 04/06/20 | 04/28/20 | 05/15/20 | 05/29/20 | 06/19/2020 | 7/7/2020 | Difference | Fed Student Loans | $105,438.65 | $104,422.08 | $103,616.48
| $102,789.29
| $102,778.96
| $102,782.75
| $102,716.99 | $102,719.32
| $102,654.09
| 102,588.32
| $65.77
| Private Student Loans | $6,204.46 | $6,131.58 | $6,071.97
| $5,872.95
| $5,624.31
| $4,462.05 | $2,974.47 | $1,898.81
| $1,580.33
| $1,502.25
| $78.08
| Total | $111,643.11 | $110,553.66 | $109,688.45
| $108,662.24
| $108,403.27 | $107,244.80
| $105,691.46 | $104,618.13
| $104,234.42
| 104,090.57 | $143.85
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Another baby step for me. It is difficult to not throw another 100 at this just to get the next thousand marker, but I am stretching myself way thin with mega savings and starting to spend on all those household issues I've been talking about. It is needed. But it's difficult to acknowledge I can't super save and super pay down debt simultaneously! But that is the reality for me right now. Maybe next year? Maybe! I doubt it, but who knows. I'm lucky to be at my income level, and I need to be more grateful, more serene about financial pressures, and learn to live within my salary joyfully! If I can start next year with a level contribution to max 401k, that will help as now my 401k contribution is a bit higher due to skimping earlier in the year on it. About 100k of my student loans are at 0%/no payment. If that comes to an end, and regular payments resume, then things change a lot! I also need to keep cognizant that with those payments suspended, and me not making additional payments, that my payoff date is extended as well. I'll try to catch up on that next year. I think I am going to miss both my major payoff goals in 2020, paying off the private, and getting the fed below 100k. I just need to be ok with that and understand those were big goals, I've made good progress, but other priorities need addressing right now. TL/DR Another baby step for me, and a small one at that!
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Deleted
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Post by Deleted on Jul 7, 2020 9:27:14 GMT -5
But it's difficult to acknowledge I can't super save and super pay down debt simultaneously! Story of my life.
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Deleted
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Post by Deleted on Jul 7, 2020 9:28:20 GMT -5
I won't be able to keep up that pace once I have a mortgage payment again, but I can absolutely do it for now while I'm in this rental! I'll also have a nice chunk for the weeks between not having to pay last month rent here and waiting for the mortgage payments to start after closing on a place. I knew this would go quickly once I got enough of a boost from the house sale windfall. I just needed to get some traction in paying stuff down. I can breathe again. It doesn't make you think about renting longer until it's wiped out?
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chiver78
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Post by chiver78 on Jul 7, 2020 9:32:31 GMT -5
I won't be able to keep up that pace once I have a mortgage payment again, but I can absolutely do it for now while I'm in this rental! I'll also have a nice chunk for the weeks between not having to pay last month rent here and waiting for the mortgage payments to start after closing on a place. I knew this would go quickly once I got enough of a boost from the house sale windfall. I just needed to get some traction in paying stuff down. I can breathe again. It doesn't make you think about renting longer until it's wiped out? no, because typical rent is not what I am paying here. even with a roommate in a regular lease situation, it would still be way more than I am paying here. COL is obscene here, it actually came out to be cheaper to live in Iceland than in the greater Boston area.
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nikiz628
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Post by nikiz628 on Jul 7, 2020 11:18:46 GMT -5
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Minnesotagirl7
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Post by Minnesotagirl7 on Jul 7, 2020 11:58:14 GMT -5
Apologies for the lack of shoutouts, still trying to get caught up from the long weekend. Keep up the great work everyone! Smileys are updated Smileys Link
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TheHaitian
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Post by TheHaitian on Jul 7, 2020 15:05:39 GMT -5
Hey everyone,
The notary came this morning and we signed all the refinance paper work and uploaded all the documents we needed to upload online.
So home was valued at $630,00 and the new loan amount is $502,000 and our monthly payment is $2,714 down from $3,315 (bye bye PMI), so a savings of $600.00/month
Question 1:
From what I understand I should be getting some of my escrow balance back from my old mortgage holder. Currently it is $3652.81 -> half of my property taxes are due in August : $2,128 -> Home insurance is due in August : $1,353 -> yet with my new loan they charged me in the closings costs 6 months of homeowners insurance at $1,044 (which is higher than what I pay) and 6 months of property taxes $2,120
---> Just trying to figure if my new company is going to pay it or my old company going to pay it or should I pay it? trying to make sure the transition is smooth, and if I should be expecting a refund from my first loan company.
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Question 2
Second part it seems between the loan amount - the closing costs - total payoffs = there is a total difference of $2,440 which is cash to borrower. We were not expecting that, we did not do cash refinance (duh such a small amount) so was a bit surprised. I wonder why they did not just lower our mortgage principal by that amount / money they are lending us vs giving us cash back.
First time we are refinancing so not sure and they notary was just there to watch us sign and could not answer that question. I will take that money and throw it at our debt for sure but just wondering. I can always call my mortgage guy and ask him...
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Question 3
My mortgage balance is 8k less than what on paper they are saying they will be paying the bank. My balance is $475,999.38 yet on the paperwork I signed the estimated payoff used is $484,192. So $8,192.62 ... I know between balance and payoff balance there is usually a difference but 8k seems pretty big to me. I called the bank this morning to get my exact payoff balance but I was on hold for over 20 minutes so give up.
I do know when I applied I said my mortgage was $480,000 so not sure if he went off that or something. So should I expect the difference between the two back as a refund from WF?
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Just an observation in the world of covid :
- Notary came to my house wearing a face mask and gloves. We were on the deck because being open space he felt more comfortable. We stayed standing up because he wanted a bit of a distance between us, so would put the paper down, we would go in and sign them and step back. He would come in, put the papers aside, put new paper down, explain, show where we needed to sign etc.
- Only today got in the mail my paperwork from Quicken. So I much appreciated Lower vs them. 1) they were offering me 3.85% vs lower 3.25% and their closing cost was about ~10k more than Lower. Don't remember the details why, jus threw it in the trash. Same deal with Wells Fargo and they have carried my mortgage on 2 different homes.
So I am happy with the decision I made with the info I had. At $2,715, our mortgage is currently what 2 bedrooms apartments are going for up the street. So that will help improve our situation in the coming years and with the life ability to refinance... if our situation greatly improves aka debt is paid off or paid down and rates are lower we could refinance....
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swordguy
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Post by swordguy on Jul 7, 2020 15:38:02 GMT -5
So home was valued at $630,00 and the new loan amount is $502,000 and our monthly payment is $2,714 down from $3,315 (bye bye PMI), so a savings of $600.00/month Can't help you with your questions, you'll have to ask the various loan companies. $600 per month is an awesome cash flow improvement! I don't like having to pay insurance premiums to protect my family but it TRULY IRKS ME to pay someone else's insurance premiums, so double hooray for getting rid of the PMI!
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TheHaitian
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Post by TheHaitian on Jul 7, 2020 15:40:11 GMT -5
cawiau 07/07/20 - $90.731.35 (12/19/19 - $90,718.63)
Account | Beginning
| Current | Difference | Personal Loan I | $30,967.38
| $0.00 | $30,967.38 | Personal Loan II | $23,526.24
| $21,312.18 | $2,214.06 | Personal Loan III | $0.00 | $29,000.00 | ($29,000.00) | Discover Card I | $19,906.08 | $17,800.00 | $2,106.08 | Discover Card II | $7,800.00 | $7,300.00 | $500.00 | Citicard I | $0.00 | $8,000.00 | ($8,000.00) | Citicard II | $0.00 | $4,400.00 | ($4,400.00) | Capital One I | $5,571.27 | $2,919.17 | $2,652.10 | Capital One II | $0.00
| $0.00 | $0.00 | Citicard | $1,122.95 | $0.00 | $1,122.95 | TD | $1,824.71 | $0.00 | $1,824.71 | Total | $90,718.63 | $90,731.35 | ($12.72) |
Current overall situation.. so I paid off Personal Loan I; it was the 401k Loan at my job. For peace of mind and to not feel that I was beholden to my job, I decided it was the best one to get ride off. That frees up about $700/month and add on to that the $600 from the refinancing, that is $1,300 I can use to get things moving in the right direction again.
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debthaven
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Post by debthaven on Jul 7, 2020 15:53:56 GMT -5
such fantastic changes carl!!! yay for selling your house swordguy!!! can't wait to see that update! great progress rukh!!! you'll soon be under 100K!
fabulous progress chiver!!! like mpl i wish you could stay in that rental even just a few more months, even if i know it's not the ideal living situation. have you ever considered trying to get a petsitting or housesitting gig? dunno if that would be feasible with two dogs but you'd make even more great progress.
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nidena
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Post by nidena on Jul 7, 2020 20:50:15 GMT -5
Woo Hoo!! Just added $110,000 to the debt load. Closed on the house today.
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TheHaitian
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Post by TheHaitian on Jul 7, 2020 23:41:23 GMT -5
Woo Hoo!! Just added $110,000 to the debt load. Closed on the house today. Where did you find a house for $110,000? You cannot even get a studio around here for that.
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nidena
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Post by nidena on Jul 8, 2020 0:07:41 GMT -5
Woo Hoo!! Just added $110,000 to the debt load. Closed on the house today. Where did you find a house for $110,000? You cannot even get a studio around here for that. Indianapolis. It's a modest 3 bd/1ba with full finished basement and detached two-car garage. 1976 total sq ft.
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forwardwego
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Post by forwardwego on Jul 8, 2020 7:59:02 GMT -5
Where did you find a house for $110,000? You cannot even get a studio around here for that. Indianapolis. It's a modest 3 bd/1ba with full finished basement and detached two-car garage. 1976 total sq ft. Congratulations! That sounds like an excellent value!! I'd love to see pictures please!!!
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swordguy
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Post by swordguy on Jul 8, 2020 8:26:10 GMT -5
Woo Hoo!! Just added $110,000 to the debt load. Closed on the house today. Where did you find a house for $110,000? You cannot even get a studio around here for that. I bought my first 3 rental houses for less than that. In total, not per house. Did take me another $30,000 and a lot of sweat to get them rent ready, again, in total. These are nice houses, by the way, in decent working class neighborhoods. You can find photos of them scattered in my journal at forum.mrmoneymustache.com/journals/sword-guy's-journal/ In part it depends on what part of the country you are buying in. It depends on where in the business cycle we are. (If you buy after boom times have been in place for some years, they cost more. If you buy a year into a recession, they cost less.) It depends on whether you're willing to do a fair bit of hard work to spiff them up yourself or whether you want to hire out all the work. Whether you're buying for cash or are using owner financing or bank financing. And it depends on how you look for them. Learning how to find and buy at wholesale prices instead of retail prices makes a big difference.
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nikiz628
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Post by nikiz628 on Jul 8, 2020 9:51:59 GMT -5
Woo Hoo!! Just added $110,000 to the debt load. Closed on the house today. Where did you find a house for $110,000? You cannot even get a studio around here for that. One of the few perks of living in Indiana lol. LCOL. I’m 90 miles outside Indy and $110,000 will get you a brand new build.
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nidena
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Post by nidena on Jul 8, 2020 10:09:25 GMT -5
I really like that my mortgage payment is only $652. I pay $840 for rent and will continue that payment trend with the mortgage. Should knock a decade off the payoff schedule.
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Maryland Monroe
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Post by Maryland Monroe on Jul 8, 2020 16:20:17 GMT -5
I really like that my mortgage payment is only $652. I pay $840 for rent and will continue that payment trend with the mortgage. Should knock a decade off the payoff schedule. Great idea! Does the $652 cover taxes and insurance, too?
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nidena
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Post by nidena on Jul 8, 2020 18:42:04 GMT -5
I really like that my mortgage payment is only $652. I pay $840 for rent and will continue that payment trend with the mortgage. Should knock a decade off the payoff schedule. Great idea! Does the $652 cover taxes and insurance, too? Yep. P&I is just $493 or something like that.
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nooccar
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Post by nooccar on Jul 10, 2020 11:53:03 GMT -5
Update: Nooccar(2): 7/10/2020 $39,200.25 (11/4/2010 $73,475.09 WU197)
It is hard to be motivated paying just the minimum. I'm setting aside the extra payments for when life is normal if I don't need them in the future. I really enjoyed seeing the balance go down on my graph & watching how many months/years I was eliminating.
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chiver78
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Post by chiver78 on Jul 10, 2020 12:17:03 GMT -5
I just got my preapproval letter back from my mortgage broker. he wrote it for near the max of what I'd be approved for, so that he doesn't have to go back to re-verify things if I want a different lower number on it to accompany an offer. my credit is only unlocked for another few days. he said that if I were to lock in a rate today, that it would be high 2.xx%. that's pretty nuts.
so now I can plan for next week to go look at a few listings. I'm going to take an extra vacation day Thurs and see a few places with my realtor, as of now there is absolutely nothing on my calendar.
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swordguy
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Post by swordguy on Jul 11, 2020 10:10:48 GMT -5
Realtor called and said some folks want to see the old house to decide on whether to make a back-up offer. A back-up offer would be used if the current buyers back out. I said yes. ALWAYS!
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debthaven
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Post by debthaven on Jul 12, 2020 2:50:04 GMT -5
Just curious Swordguy, what happens if these buyers make a better offer?
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nidena
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Post by nidena on Jul 12, 2020 9:00:18 GMT -5
Five days into homeownership and the first big expense happened today. The "cat domain" currently has carpet that looks like tri-colored moss. This wouldn't be a problem if it was pink but it's browns and greens and my cat poops outside the litter box on a daily basis. I really don't want to encounter not being able to find the messes so I'm replacing the carpet with grey wood-look vinyl. For a 10' x 25' room, $950 w/military discount. Thankfully, it'll last for years so I know the investment will have a great ROI. In other aspects of moving, I've made a trip every day since Tuesday with my car loaded up. Tomorrow will be the U-haul day, moving the actual furniture. I'm hoping I have the energy to make two trips today. It's just such a long drive. It's an 18 mile trip that takes 30+ minutes. Plus, loading/unloading by myself. Almost done.
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swordguy
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Post by swordguy on Jul 12, 2020 12:07:10 GMT -5
Just curious Swordguy, what happens if these buyers make a better offer? There are two answers. A legal one and an ethics one. Legally, We're under contract to sell the house on specified terms. If the buyer is willing and able to complete the sale and we refuse to honor the contract, they could take us to court for damages. Certainly, they would have spent money on inspecting the house, etc., that we should be made to cover. I believe they could file that contract with the county registrar of deeds which would cloud the title and make it hard for the 2nd set of buyers to get a clear title. Without a clear title the 2nd buyers wouldn't be able to get a mortgage from a bank or any other lender with a clue. Ethically, we gave our word and that matters. If the first buyers can and will proceed with the purchase, we'll honor our word. Money just isn't worth mistreating people.
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debthaven
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Post by debthaven on Jul 12, 2020 12:24:52 GMT -5
Legally, We're under contract to sell the house on specified terms.
Thanks. I had forgotten you had already signed a contract, or I wouldn't have asked.
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forwardwego
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Post by forwardwego on Jul 12, 2020 20:35:47 GMT -5
Realtor called and said some folks want to see the old house to decide on whether to make a back-up offer. A back-up offer would be used if the current buyers back out. I said yes. ALWAYS! We live in an area that is almost always more a buyers' market. So the back up offer doesn't happen much, and I'm curious. As you say, if the buyers back out, then the back up offer would be used. So if you accept the back up offer, doesn't that kind of tie up that buyer while your first buyers are processing? Or are they free to shop and withdraw if they find something where they can be the first buyer? If buyer A backs out, then you are permitted to keep their deposit, plus proceed with buyer B?
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swordguy
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Post by swordguy on Jul 12, 2020 21:18:16 GMT -5
Realtor called and said some folks want to see the old house to decide on whether to make a back-up offer. A back-up offer would be used if the current buyers back out. I said yes. ALWAYS! We live in an area that is almost always more a buyers' market. So the back up offer doesn't happen much, and I'm curious. As you say, if the buyers back out the back up offer would be used. So if you accept the back up offer, doesn't that kind of tie up that buyer while your first buyers are processing? Or are they free to shop and withdraw if they find something where they can be the first buyer? I don't really know. But any buyer with a lick of sense puts some "Get out of contract free" cards into their offer, so I don't see why it would keep them from looking (and buying) elsewhere. And any seller who's not in a "Oh, I'll sell it for more than asking price the first day it goes back on the market" situation would be happy to have someone who wants to do this, so they would accept reasonable ways for the 2nd buyer to back out.
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nidena
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Post by nidena on Jul 14, 2020 10:03:39 GMT -5
Got all the furniture moved yesterday. Only two more trips left. One, today, for all the small stuff that I didn't want to put in the moving truck yesterday and then another one, later this week, to move my modem and computer before the internet transfer this coming Monday.
Discovered that my hvac, water heater and softener, and washing machine all empty into a sink in the basement and that sink empties into the sump cavity. The sump pump plumbing then dumps everything out on to my driveway. This routing occurred when the home inspector discovered that the sump pump plumbing was routed into the regular waste water plumbing. I don't think he realized that all those things emptied into it. It's not obvious until you wash a load of clothes and 40 gallons of water jettisons out on to the driveway. So, I texted my realtor the situation and asked him to pass it on to the plumber that he hired for the original reroute job. I don't want an overworked sump pump and I also don't want gallons and gallons of water being routed across my driveway, especially come winter.
Anyhow, I don't expect any other big money adventures in the next couple weeks so I'm just getting through them, getting the lease termination fee paid on Aug 1st-ish (along with the various final bills), and then prepping for September's expenses i.e. the bills for the new house vs this small apartment.
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