CCL
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Post by CCL on Jul 6, 2020 21:01:37 GMT -5
The APRs seem high. Is that with rolling the closings costs/points into the loan? When I refi'd mine in January I paid $299 total in closing costs for a $150k loan.
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Deleted
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Post by Deleted on Jul 6, 2020 21:08:47 GMT -5
Yes, that's with rolling the points in. Not closing costs though and my state has pretty high mandatory items for closing costs.
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Deleted
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Post by Deleted on Jul 7, 2020 10:08:25 GMT -5
Oh good lord. I just wasted 30 minutes of my time and a credit pull with Rocket Mortgage.
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Deleted
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Post by Deleted on Jul 7, 2020 14:20:58 GMT -5
Got another email out to the credit union lady to see if there's any way to reduce closing costs, but at this point I'm thinking tapping the 4% HELOC is my cheapest option.
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debthaven
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Post by debthaven on Jul 7, 2020 15:59:51 GMT -5
My CU is advertising some Rapid Refi 10 year loan at 2.99%
could you start with this and then use the heloc if you still need to? also i read on another thread that ex1 got a huge raise. i still don't see the problem with letting him continue to help, since HE offered, and since YOUR home is and will continue to be ds1's home base for at least the next 4 years. as others have said, all the FA is thanks to you. even if ex1 gave you 200/month, that's only 20% of what he's been paying, but it's still helpful, and half your shortfall.
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Deleted
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Post by Deleted on Jul 7, 2020 21:17:05 GMT -5
My CU is advertising some Rapid Refi 10 year loan at 2.99%
could you start with this and then use the heloc if you still need to? also i read on another thread that ex1 got a huge raise. i still don't see the problem with letting him continue to help, since HE offered, and since YOUR home is and will continue to be ds1's home base for at least the next 4 years. as others have said, all the FA is thanks to you. even if ex1 gave you 200/month, that's only 20% of what he's been paying, but it's still helpful, and half your shortfall.
He offered, yes. But it wasn't exactly an enthusiastic offer and he was pretty happy when I declined. If he was rolling in money, I'd maybe feel differently, but he's not. He's almost 60 with health problems with two little kids and makes about 75K/year. For 15 years he's gone way above and beyond, including staying on the mortgage with me for 8 years...even refinancing with me once, until I could get it in my name only. He couldn't buy his current house until he got off my mortgage. Everyone was constantly warning me on here how I shouldn't depend on him and he never let me down once. I'm cutting him loose. He shouldn't have to subsidize my retirement savings or dumping money at my mortgage post kid hitting eighteen. I could fix this if I just sucked it up and refinanced to the 30 year. Still waiting to hear back from the CU lady about if she could give me a more precise breakdown of closing costs. Depending on what she says I might move on to the other guy that handles the Rapid Refi's. The Amerisave guy I talked with today was trying to tell me it would be about $1200 in closing costs in MN, but I think he was full of it. I'm pretty sure just title insurance is close to that...need to dig up my old refinance paperwork from 2012. Either way he wanted to charge me 1.5% in points on top of that. I'm really getting sick of talking to all these mortgage people on the phone. I don't do phone negotiation well for this kind of thing. I need to sit down with someone and look at numbers on paper. Or at least have them all emailed to me.
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raeoflyte
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Post by raeoflyte on Jul 7, 2020 22:07:22 GMT -5
Tell them you want estimates and that your job makes it impossible to take calls during the day, but you can respond to emails. Refinancing sucks but you get to set the fiery hoops at this stage.
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Deleted
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Post by Deleted on Jul 10, 2020 14:54:38 GMT -5
Today I got an email from my CU that I can lock in my HELOC to 2.79% until 8/21, but I have to opt in. I wonder if I should do that or if they're offering because it's going to fall even lower than that?
eta: Guess not. It looks my HELOC has a 4% floor. I'm assuming that means it can't go below 4%? APR=Annual Percentage Rate. *2.79% APR available through 7/31/2021 to member named in this email. On August 1, 2021, your HELOC rate on new advances and existing balances will adjust to a variable rate that adjusts monthly based on the Prime Rate; loans up to 80% LTV are priced at Prime + 0% with a floor of 4%, and loans between 80 and 90% LTV are priced at Prime Plus 1% with a floor of 4%. If you have questions, or want more information, please call Altra at 800-755-0055.
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finnime
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Post by finnime on Jul 11, 2020 14:15:28 GMT -5
Yes, it can't go below 4% unless you take the opt in. Me, I'd opt in.
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Deleted
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Post by Deleted on Jul 20, 2020 11:06:21 GMT -5
CU is offering me 2.425 on a 15 year loan which would about cut my payment in half to around $650. It's more appealing with more than .5% rate drop. They still want almost $2500 in closing costs though, and I go from having $9800 left in interest to 19K The 30 year is 2.85% and payment would be about $400.
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CCL
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Post by CCL on Jul 20, 2020 12:26:10 GMT -5
Are the 15 year and 30 year the same closing costs? Unless one's a lot less, I'd go with the 30 year and be done with it. Don't worry too much about the total interest. You can always pay extra or just pay it off at some later point in time.
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Deleted
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Post by Deleted on Jul 20, 2020 13:07:33 GMT -5
I'm assuming they're the same closing costs. I asked him about a appraisal waiver and this was his response.. "I would expect we would get a appraisal waiver but I cannot be for certain as the decision is made by the secondary market guidelines. I have seen more and more of them but I cannot give you 100% guarantee we would get it." That's like $500 of the closing costs. I'm asking for a 94K loan on a property that they loaned me 185K for just 8 years ago. The estimated market value for my tax assessment is 336K.
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TheOtherMe
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Post by TheOtherMe on Jul 20, 2020 14:13:19 GMT -5
My CU offered me a similar rate with about $2000 in closing costs.
I am older than you and there wasn't much of a difference in the interest rate and my current interest rate. I decided to pass.
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Deleted
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Post by Deleted on Jul 20, 2020 14:24:31 GMT -5
I broke down and took the nuclear option.
I called my mom...😭😭😭
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travelnut11
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Post by travelnut11 on Jul 20, 2020 14:28:08 GMT -5
My Wisconsin credit union is offering a Rapid Refinance loan with closing costs of $149. Is there such a thing in MN? I'm a little annoyed as we refinanced just before they increased the max loan amount for this program. We would've met the 70% LTV and saved on the rest of the traditional closing costs. It seems like this would be ideal for someone like you with a lot of equity? I know you said MN has mandatory closing fees so maybe this type of thing is not available there?
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Deleted
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Post by Deleted on Jul 20, 2020 14:38:00 GMT -5
They have Rapid Refinance options for a 10 year (or 15 or 20 with a balloon), but the fees will be more like $600. Plus the rate isn't as good...not that that is my primary concern.
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CCL
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Post by CCL on Jul 20, 2020 18:24:02 GMT -5
I think they charged me $250 for my appraisal, which is a little on the low side for around here. $350 is more typical.
I refinanced mine in January. If rates go down even .25% with the same closing costs I'm going refinance again. I'll take all the savings I can get. They barely asked for any documentation, so it was also easier than other loans I've had.
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Deleted
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Post by Deleted on Jul 20, 2020 18:38:33 GMT -5
I just think the appraisal at this point is stupid. Anyone could just drive by the property and know it's worth way more than 120K or whatever it would take to get me to under 80% LTV. So, my mom apparently has some savings bonds she's "been meaning to give to me" since my grandma passed away 10 years ago, worth about 15K. She thinks I should just add that to the 12K I had to keep me afloat a couple years and not pay closing costs, but she's going to have a pow wow with her sisters later about it and then I'll see what the committee has to say. Her sisters have lots of houses between the two of the as investment properties so they may be more Phil-like, I don't know.
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CCL
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Post by CCL on Jul 20, 2020 18:43:17 GMT -5
Maybe the committee will vote to pay the rest off for you?
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Deleted
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Post by Deleted on Jul 20, 2020 19:17:03 GMT -5
LOL I don't think so. There are 14 kids and 19 grandkids between the three of them. I'll just get free advice from the committee.
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debthaven
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Post by debthaven on Jul 21, 2020 1:49:34 GMT -5
I get not wanting to go from 7 years left to 30 years, even if that would give you the most flexibility.
I think the 15Y refi at that rate is a good compromise. You'll be saving 650/mo plus the 100/mo you've been putting in DS1's college fund = 750/mo. You'll only need 250/mo from your "survival fund".
ETA: As others have said, you may save in food and utilities, but you'll have other college-related expenses (ie travel), so I'm considering that a wash.
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Deleted
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Post by Deleted on Jul 21, 2020 13:36:52 GMT -5
I submitted an application for the 15 year. I still am not sure I want to do that, but we'll see what he comes back with for closing costs.
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debthaven
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Post by debthaven on Jul 21, 2020 13:57:01 GMT -5
MPL did The Committee get back to you yet?
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Deleted
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Post by Deleted on Jul 21, 2020 14:16:07 GMT -5
No, they did not. I was getting anxious because it was the last day I could get a mortgage shopping credit pull without it affecting my score.
I would hate to give up that 15K gift though.
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debthaven
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Post by debthaven on Jul 21, 2020 14:25:40 GMT -5
If it's a gift, why would it be contingent on not getting a refi? Maybe your mom (rightly) guessed you'd need it more at some point in the future.
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Deleted
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Post by Deleted on Jul 21, 2020 14:38:49 GMT -5
You don't know my mother. I've been down this road multiple times. She doesn't want me to refinance and pay closing costs, she wants to help me float those couple years so I can get the house paid off in 7. That's her offer, take it or leave it. If I refinance and cover my own ass, she'll just tuck the money away waiting until she can bail me out of something later.
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debthaven
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Post by debthaven on Jul 21, 2020 14:41:26 GMT -5
Ah, ok, got it. That's tough. It's a very generous gift, but you'd still be living on a super tight budget and using savings.
And what about the very cheap 10Y refi option? Since the closing costs on that are minimal, would she agree to give you the money then? (maybe minus the closing costs)
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Deleted
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Post by Deleted on Jul 21, 2020 14:56:18 GMT -5
I'd kind of tossed it aside since it wasn't saving me a whole lot. Then I got starry-eyed over the nearly 60 basis point rate cut on the 15 year fixed. Not that that matters. I will never break even on the refinance. It's hard to look at it as trying to just pay less. I've refinanced so many times to get a lower rate and shorter term. It feels like going backwards.
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debthaven
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Post by debthaven on Jul 21, 2020 15:06:33 GMT -5
It feels like going backwards.
People refinance all the time, for all different reasons. Please try not to look at it that way. You're extremely attached to your land and your pets and your lifestyle. A refi gives you options. :-)
On the other hand, you were already tempted to "wing it" with 12.5K in the bank. Another 15K in savings (if you are sure your mom is serious) would make it easier to "wing it". I don't love that the gift is conditional but it is what it is.
Good luck whatever you decide MPL. You know we are all rooting for you!
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gs11rmb
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Post by gs11rmb on Jul 21, 2020 15:29:34 GMT -5
Stick with the 15 year refinance because you won't hear the end of it if you take the $15K from your mother and then in a couple of years trouble arises and you have to refinance anyway.
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