RossMAN
Grand Nagus
- Feb 24, 2000
- 78,927
- 389
- 136
charrison - Hehe funny smart ass, if I keep burying myself in cc debt with all these Hot Deals then yes I'm going to rent for the rest of my life.
Eventually I'll get my act together and start REDUCING my cc balances instead of INCREASING them but until then
Eventually I'll get my act together and start REDUCING my cc balances instead of INCREASING them but until then
Slacker
Diamond Member
- Oct 9, 1999
- 8,623
- 33
- 91
Wondering if I made a good decision or not, I currently have a 30yr FHA arm at 6.625% (6yrs in) and am in the process of refi to close on or about october 7 at 6.375 for out of pocket of $350.00 and add to finance amount of $2750.00 total cost to refi $3000.00 to go from arm to fixed and drop .25% (edit fuzzy math)
Any thoughts?
Any thoughts?
When does the fixed portion of your ARM expire? How long do you expect to stay at your residence?
We refinanced last week. Got a 30 year with 6%. We had 6.375 and the new rate was 6.25 but we bought down to 6 even. We looked at a 3year arm at 4.45% but in the worst case it could go up 2% a year and after 3 years be up to 10.45% Arms are the way to go if you know you arewithout a doubt going to move before the arm is up.
So our payment went down only $40 a month but we also borrowed over 12K.
So our payment went down only $40 a month but we also borrowed over 12K.
Run, don't walk, to refinance. Getting 6.375% fixed for $3000 out-of-pocket is a no-brainer especially when you are in the variable portion of your ARM and plan to live in your house awhile. Rates will go up eventually, they always do.
Slacker
Diamond Member
- Oct 9, 1999
- 8,623
- 33
- 91
I started the process last friday (08/23/02) and closing is scheduled for october seventh (10/07/02) the only thing I am worried about now is if they dont approve my loan, then I would lose the $350.00 and have to try again or stick with the loan/rate I have which I am certain would go up in the years to come.
One thing that I think is working in my favor is that the value of my home has doubled since I bought it six years ago, bought at $67,000.00 and comparables are selling in the $130's , this counts as some kind of equity doesnt it? I have only about $5,000.00 in real equity but I am hoping that the increase in property values in my area are considered.
I am refinancing with Bank of America, I have had my checking account with them for about ten years and last year they approved me for a $7500.00 Visa card.
When I expressed my concern to the loan officer she said she wasnt allowed to express an oppinion as to whether the loan would likely be approved but she told me that if I had called for a pre-approval I would have gotten it, I guess I am just a little nervous about possibly missing the window of opportunity and maybe losing a few bucks, just have to wait and see.
There are a couple of other benefits to the deal I made, my home owners insurance is included in the loan, I will no longer be paying PMI (private mortgage insurance) and I will have "Advantage" checking with no monthly fee and other free services.
fingers crossed
One thing that I think is working in my favor is that the value of my home has doubled since I bought it six years ago, bought at $67,000.00 and comparables are selling in the $130's , this counts as some kind of equity doesnt it? I have only about $5,000.00 in real equity but I am hoping that the increase in property values in my area are considered.
I am refinancing with Bank of America, I have had my checking account with them for about ten years and last year they approved me for a $7500.00 Visa card.
When I expressed my concern to the loan officer she said she wasnt allowed to express an oppinion as to whether the loan would likely be approved but she told me that if I had called for a pre-approval I would have gotten it, I guess I am just a little nervous about possibly missing the window of opportunity and maybe losing a few bucks, just have to wait and see.
There are a couple of other benefits to the deal I made, my home owners insurance is included in the loan, I will no longer be paying PMI (private mortgage insurance) and I will have "Advantage" checking with no monthly fee and other free services.
fingers crossed
It's highly unlikely that you won't get approved. You just need to have average credit or better and payments that do not exceed 30% of your gross income. Since you already have an existing, more expensive mortgage you should be qualified with little question.
If you are paying PMI now that you have even more reason to refinance. You will be saving a lot of money in the long-run.
If you are paying PMI now that you have even more reason to refinance. You will be saving a lot of money in the long-run.
My refi took a sudden right turn yesterday.
The loan consultant called me up and asked if I wanted the 7/1 ARM at 5.75%. I asked him if he was inviting me to change. He said that I could still do whatever I wanted but I'd have to make a final decision now. Strange, considering that I committed (or so I thought) to the ARM about a month ago. Anyway, I asked him what current rates were and he said the 7/1 ARM is now 6.125% (though I could still keep it at 5.75%). However, the 30yr fixed is now 6.375% instead of 6.50%. Some chemical went off in my brain and I told him that I wanted the fixed at 6.375% instead of the 7/1 ARM. OK, fine, he said, closing is on September 6.
I suppose having an ARM was scaring me, even if the fixed portion was for 7 years and I would place the chance that I'll be in my house for more than 7 years at 20%. But I was "terrified" that I might be here a while - since you never really know what the future will bring - and I would be highly p!ssed if I had to refinance in 2009 only to get a 9% mortgage or something...especially when I can get a lock in at a permanent 6.375%, a rate where you'll never have to refinance again.
So by going fixed, my payments be $42 higher than if I choose the 7/1 ARM (though they will still be $63 less than my current mortgage). However, since that added $42 is all interest I'll have more deductions. Since my marginal rate is 30%, that $42 is effectively $29. I don't think it's wise to trade fixed for variable for $29 a month. Closing costs will be $1621 so the payback period is 25.7 months, an acceptable duration.
The loan consultant called me up and asked if I wanted the 7/1 ARM at 5.75%. I asked him if he was inviting me to change. He said that I could still do whatever I wanted but I'd have to make a final decision now. Strange, considering that I committed (or so I thought) to the ARM about a month ago. Anyway, I asked him what current rates were and he said the 7/1 ARM is now 6.125% (though I could still keep it at 5.75%). However, the 30yr fixed is now 6.375% instead of 6.50%. Some chemical went off in my brain and I told him that I wanted the fixed at 6.375% instead of the 7/1 ARM. OK, fine, he said, closing is on September 6.
I suppose having an ARM was scaring me, even if the fixed portion was for 7 years and I would place the chance that I'll be in my house for more than 7 years at 20%. But I was "terrified" that I might be here a while - since you never really know what the future will bring - and I would be highly p!ssed if I had to refinance in 2009 only to get a 9% mortgage or something...especially when I can get a lock in at a permanent 6.375%, a rate where you'll never have to refinance again.
So by going fixed, my payments be $42 higher than if I choose the 7/1 ARM (though they will still be $63 less than my current mortgage). However, since that added $42 is all interest I'll have more deductions. Since my marginal rate is 30%, that $42 is effectively $29. I don't think it's wise to trade fixed for variable for $29 a month. Closing costs will be $1621 so the payback period is 25.7 months, an acceptable duration.
We're refinancing w/ Fleet. Going from a 30yr fixed 7% to a 20yr fixed at 5.99%, payments are going to go up a little bit but we'll pay off 10yrs sooner AND lots less in interest. No closing costs or fees of any kind on the refinance so I'm happy.
No closing costs? I don't think that's quite right. You may not have any out-of-pocket closing costs, but those costs are rolled up into the loan amount. I could have done that - it was offered to me - but then I'm losing equity.
The only time you can avoid closing costs is if you stick with the same mortgagor and they let you refi so that you won't leave them for some other servicer.
Yes, you can get by without paying closing costs. The mortgage company whom you apply with picks up the closing costs (approx. $1,500) and then gets this money back when they sell your mortgage immediately following the closing (e.g. to Chase). However, you are responsible for reestablishing the escrow amounts with your new mortgage, but you'll get most of that money back after payment has been made to eliminate your old, higher-interest mortgage. Also, for VA refinancers, there is a "streamlined" refinance option. You don't have to pay a 1% loan application fee, but you do have to pay a 1/2% "funding" fee. Also, some items are not required (e.g. - credit check) with this type of refinancing.
Then the mortgage company whom you apply with has to charge you a higher % rate to recoup their costs. I worked for a mortgage company so I've seen how it works. They'll get their money somehow, either overtly or disguised in a boosted APR.
It's 5.99% for 20yrs, no points no fees and no closing costs. Nothing will be added to my principle(sp?) and nothing is due at closing. It's considered a Home Equity Loan so it could be that there are no costs because it's a 2nd mortgage but we are using it to pay off the first mortgage and they'll hold the title. Maybe that's how they get around the fees. To me, I don't care, 20yrs at 5.99% is better than 30yrs at 7%. There are some restrictions like you have to have 20% in equity in your home and you can NOT use it as a first mortgage to "buy" a home, only to refinance. At least that was my understanding.
I won't know any (other) detailed costs (which again are supposed to be 0) until we go to closing. Still have to schedule that, but, at this point I'm approved so it's just a matter of reading and signing the paperwork at closing.
The fleet deal has been posted over @ Fat Wallet and here before. I just finally found it worth while to apply. The APrate was actually 6.24% but there is a .25% for setting up an account for them to take autopayments from which brings it down to 5.99% fixed.
I'll post here after closing (whenever we go) confirming if above is true, but, others have done it and said there were no costs (due at closing or financed).
The rate was up .125% to 6.38% on FRI. You can call Fleet at 1800 CALL FLEET (225 5353) and ask them the details yourself. They don't advertise the rate on the net so you have to call and ask. They really try and push you to apply when you call, but they aren't rude. I called about 10-15x easy checking rates before I applied.
<- I have no affiliation with Fleet and could care less if anyone wants to try this or not.
I won't know any (other) detailed costs (which again are supposed to be 0) until we go to closing. Still have to schedule that, but, at this point I'm approved so it's just a matter of reading and signing the paperwork at closing.
The fleet deal has been posted over @ Fat Wallet and here before. I just finally found it worth while to apply. The APrate was actually 6.24% but there is a .25% for setting up an account for them to take autopayments from which brings it down to 5.99% fixed.
I'll post here after closing (whenever we go) confirming if above is true, but, others have done it and said there were no costs (due at closing or financed).
The rate was up .125% to 6.38% on FRI. You can call Fleet at 1800 CALL FLEET (225 5353) and ask them the details yourself. They don't advertise the rate on the net so you have to call and ask. They really try and push you to apply when you call, but they aren't rude. I called about 10-15x easy checking rates before I applied.
<- I have no affiliation with Fleet and could care less if anyone wants to try this or not.
These figures are a little high, perhaps, but you can expect to spend at least $600 minimum on those items. You have to pay for the cost of originating and underwriting the loan.
Well, finally got around to closing today. Promised I'd share the details, so, Here's what I posted over at fat wallet for those who don't ever leave here:
Here's the link to the thread there, with more info about the fleet deal, for those that do.
Here's the link to the thread there, with more info about the fleet deal, for those that do.
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