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ConwayMuddy

ConwayMuddy

Dis member
Joined
May 19, 2020
Member Number
307
Messages
1,746
Loc
Jerkwater wi
Been considering refinancing my crap shack but really dont know where to start. Nobody in the family is much help so here I sit.

basic info, mortgage is through wells Fargo. Just over 21 years left on a 30 year. Current interest is 3.75 fixed. I have pmi that I can currently drop with W.F. Property taxes are escrowed, no points. Unpaid principal of $58k. I dont know what my credit score is and I always pay extra toward the principal.

so where do I start? Wells Fargo, another bank or credit union? Can I refi for the current length? Getting to 15 years would be nice if I can swing it. I know points are more acceptable if I plan to sell sooner rather than later, but I don't see that happening. Getting the interest down so i can stick more toward principal would be nice, just dont want an adjustable rate fucking me raw.
 
Just start calling around to banks and brokers and ask for current rates and fees for a refi.

I just got a 15 year note at 2.65%, and that rate was a little high due to the weirdness of the property....the bank I used will keep it in their portfolio and won't sell it off like most.

Bankrate is showing rates under 2% for a 15 year fixed. Fuckin' crazy.

https://www.bankrate.com/mortgages/refinance-rates/
 
Just did it.

Went through Rocket Mortgage. Quick and about easy as it gets. Closed in 12 days.

I also had Wells Fargo at 4.125 and went to 2.5%. I had to buy that down but that was fine with me. I had 23 left on a 30 yr. and went to a 15. Payment increased about $125 and my payments are like 68% principal now when they were 22% or something like that. I can't remember exactly.

I don't get anything but the guy I dealt with was super cool and easy to deal with. If interested PM me and I will send you his email. Again, I don't get anything. I just liked the guy
 
My partner at work just got a 1.86 15year through owning.com. he has said nothing but good stuff about them
 
dntsdad said:
Just did it.

Went through Rocket Mortgage. Quick and about easy as it gets. Closed in 12 days.

I also had Wells Fargo at 4.125 and went to 2.5%. I had to buy that down but that was fine with me. I had 23 left on a 30 yr. and went to a 15. Payment increased about $125 and my payments are like 68% principal now when they were 22% or something like that. I can't remember exactly.

I don't get anything but the guy I dealt with was super cool and easy to deal with. If interested PM me and I will send you his email. Again, I don't get anything. I just liked the guy
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When you say you had to buy it down, do you mean paying toward the new mortgage/terms? I've seen rocket and something else mentioned before. Wells has the mortgage, but they arent my bank. I've heard commercials for banks and c.u's offering loans toward refinancing. All new and confusing and why I havent done it sooner.
 
KarlVP said:
Why do you have mortgage insurance? That only protects the bank and does nothing for you, the homeowner.
Click to expand...

Had to have it when I got the mortgage. I got notice from wells I can drop it, but I'd like to roll that up with the refinancing
 
ConwayMuddy said:
Had to have it when I got the mortgage. I got notice from wells I can drop it, but I'd like to roll that up with the refinancing
Click to expand...

We refinanced after owning our home for two years. Went from 4.75% to 4% Got rid of mortgage insurance.

We are going to refi soon when we can get a reasonable offer on a 15 year loan. One of the things we have done is adjust the deductible on our flood and homeowners insurance. That is not only saving us money, but FEMA cut us a check on our flood insurance because their paperwork for the past 10 years has stated this is not our primary residence.
 
ConwayMuddy said:
Had to have it when I got the mortgage. I got notice from wells I can drop it, but I'd like to roll that up with the refinancing
Click to expand...

PMI is generally required when you can't put 20% down. What percentage of the home did you finance and was your credit bad? PMI is protection for the bank and does nothing for you except to cost $. If going to 15 years is on your list you can refi for 15 or run the numbers on a mortgage calculator and see what a 15 year payment looks like. You can refi for 20 or 30 years and make the 15 year note payment, reducing the overall interest you pay and have the flexibility of not having to make a larger mortgage payment.
 
Pony_Driver said:
PMI is generally required when you can't put 20% down. What percentage of the home did you finance and was your credit bad? PMI is protection for the bank and does nothing for you except to cost $. If going to 15 years is on your list you can refi for 15 or run the numbers on a mortgage calculator and see what a 15 year payment looks like. You can refi for 20 or 30 years and make the 15 year note payment, reducing the overall interest you pay and have the flexibility of not having to make a larger mortgage payment.
Click to expand...

Yeah, I didnt put anywhere near 20 percent down. Loan was for 75 and I put down $1500 or so. At the time my credit was mid 700's but I had been at current job 9 months, making a whopping $9.75 an hour.:lmao: guess I'll have to find a mortgage calculator for dummies.
 
ConwayMuddy said:
Yeah, I didnt put anywhere near 20 percent down. Loan was for 75 and I put down $1500 or so. At the time my credit was mid 700's but I had been at current job 9 months, making a whopping $9.75 an hour.:lmao: guess I'll have to find a mortgage calculator for dummies.
Click to expand...

Use the link I posted in the post below your original. You can change the term, rate, amount and everything else. One thing going for you is that, assuming the market where you are is like everywhere else, your home's value has probably gone way up compared to what you paid 9 years ago. You could probably pull some cash out on the refi and still stay above the 20% needed to drop PMI.
 
bgaidan said:
Use the link I posted in the post below your original. You can change the term, rate, amount and everything else. One thing going for you is that, assuming the market where you are is like everywhere else, your home's value has probably gone way up compared to what you paid 9 years ago. You could probably pull some cash out on the refi and still stay above the 20% needed to drop PMI.
Click to expand...

Re-fi calculator
https://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx

Using your numbers from the first post 58k left, 3.75 APR, 21 years left and going to a 15 year loan. I put in 0 points. I didn't calculate your payment and left it blank. That's why it looks like you are "saving" your monthly payment, You should look up an amortization chart and see how the loan works over its lifetime.


New Monthly Payment
$ 386.74

Monthly Savings $-386.74
Difference in Interest $-69,612.79
Total cost $0.00
Months to recoup costs 0

I would encourage you to not pull money out of your house unless you really need it. Wanting a new ride is not "needing" it. When you pull money you end up paying interest on it for decades instead of getting a separate, shorter term, loan.
 
Under 100k might be a challenge to find someone to write it. Other than that's it's just a contract, get the best deal you can. Some online lenders will beat local options.
 
ConwayMuddy said:
Been considering refinancing my crap shack but really dont know where to start. Nobody in the family is much help so here I sit.

basic info, mortgage is through wells Fargo. Just over 21 years left on a 30 year. Current interest is 3.75 fixed. I have pmi that I can currently drop with W.F. Property taxes are escrowed, no points. Unpaid principal of $58k. I dont know what my credit score is and I always pay extra toward the principal.

so where do I start? Wells Fargo, another bank or credit union? Can I refi for the current length? Getting to 15 years would be nice if I can swing it. I know points are more acceptable if I plan to sell sooner rather than later, but I don't see that happening. Getting the interest down so i can stick more toward principal would be nice, just dont want an adjustable rate fucking me raw.
Click to expand...

It’s the same process as getting a loan for a house. I use guild mortgage. MY lender said I didn’t need an appraisal (saved me $500) since I wasn’t taking money out. They gave me a few options (15/25/30 year loan) along with explaining what the payment differences were. Mine even explained I could buy a point, what buying a point costs financials, and how long it would take to pay off that point based on the $8/month I’d save on my mortgage for buying the point.


shop around, they’re going to do a soft pull on your credit and there is no reason to stick with Wells Fargo unless they’re offering you a better deal.


I had PMI on my first loan. I had the option to remove it and it required an appraisal. The only reason I would have gone THAT route was if I wanted to keep the loan. The only reason I’d want to keep the loan is if interest rates were at 5% and I had 3.8 like you. I decided to refinance.
 
det107 said:
How long did it take to get approved? Was it same day or longer...? Ima thinking of doing the same but could do w/o jokes/laughing from staff-
Click to expand...

It took some work trying to find a bank that would even consider giving me a loan, but 2012 the housing market and finance was still a mess. When I started with wells Fargo it went pretty quickly, I could have plunked down closer to $10k, but he showed me the monthly saving and it was minimal. It made more sense to sit on the cash in case something came up.
 
ConwayMuddy said:
It took some work trying to find a bank that would even consider giving me a loan, but 2012 the housing market and finance was still a mess. When I started with wells Fargo it went pretty quickly, I could have plunked down closer to $10k, but he showed me the monthly saving and it was minimal. It made more sense to sit on the cash in case something came up.
Click to expand...

It makes sense right now because you have that money. It WOULDNT make sense if you were still paying PMI and couldn’t get rid of it due to housing prices dropping. PMI is money you’re paying on a house that doesn’t pay FOR the house. Paying extra to principle is good. Paying to have a loan (PMI) isn’t.


call banks and credit unions. Tell them you want to refinance. Some might not want to refinance your house. Some might take the time like mine did and explain a bunch of options to you and show you how to compare loans using APR.
 
bgaidan said:
Use the link I posted in the post below your original. You can change the term, rate, amount and everything else. One thing going for you is that, assuming the market where you are is like everywhere else, your home's value has probably gone way up compared to what you paid 9 years ago. You could probably pull some cash out on the refi and still stay above the 20% needed to drop PMI.
Click to expand...
places seem to be selling about as fast as they hit the market. I really don't want to pull out any cash. Only thing I could use is a shop and I've been going without one as long as I've been here. 20% wouldn't be doable without a loan, 10% would leave me with less safety net than I'd like.

Pony_Driver said:
Re-fi calculator
https://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx

Using your numbers from the first post 58k left, 3.75 APR, 21 years left and going to a 15 year loan. I put in 0 points. I didn't calculate your payment and left it blank. That's why it looks like you are "saving" your monthly payment, You should look up an amortization chart and see how the loan works over its lifetime.


New Monthly Payment
$ 386.74

Monthly Savings $-386.74
Difference in Interest $-69,612.79
Total cost $0.00
Months to recoup costs 0

I would encourage you to not pull money out of your house unless you really need it. Wanting a new ride is not "needing" it. When you pull money you end up paying interest on it for decades instead of getting a separate, shorter term, loan.
Click to expand...

When you say payment, are you talking about money toward the new loan? Times have been tight with some bills insurance isn't covering. And yes I'd rather keep my equity and take another loan if I need not want something
 
ConwayMuddy said:
When you say payment, are you talking about money toward the new loan? Times have been tight with some bills insurance isn't covering. And yes I'd rather keep my equity and take another loan if I need not want something
Click to expand...

Yes, towards a new loan.

Taking the numbers from your posts


Loan 75,000
Down payment 1,500
Home value 76.5,000
APR 3.75
30 year loan that you are 9 years into

Without knowing your tax liability and insurance costs here's a swag at what your payment looks like.


Down payment amount $1,500.00
Down payment 1.96%
Payment with PMI $661.92
After 103 months $630.67 (PMI Drops)
PMI $31.25
103 PMI Payments $3,218.75
Total PMI to Jul, 2029

An amortization chart would end up looking like this

Mortgage Repayment Summary
$661.92

Payment with PMI		$630.67

After 103 months
$31.25

103 PMI Payments		$3,218.75

Total PMI to Jul, 2029
$1,500.00

Down payment amount		1.96%

Down payment %
Nov, 2050

Loan pay-off date		$50,041.21

Total Interest Paid
$200.00

Monthly Tax Paid		$72,000.00

Total Tax Paid
$83.33

Monthly Home Insurance		$30,000.00

Total Home Insurance
$7,568.04

Annual Payment Amount		$230,259.96

Total of 360 Payments
 
If you refi 58k for 15 years @ 2.65%

New Monthly Payment $ 390.85

Refi for 30 years @ 2.65%

New Monthly Payment $ 233.72
 
58k @ 2.9% for 30 years New Monthly Payment $ 241.41

If you're tight on money the 30 year, $250 a month mortgage leaves you $140 extra per month that you are not obligated to spend (at 2.65% APR) but if you don't need to spend that money on something else you can put it towards your mortgage and pay it down quicker. The sooner you pay extra towards principle on a mortgage the more you save in the long run.

If you can swing it, get the 30 year note and pay $400 a month right out of the gate.

Check the link bgaidan posted early on this thread and play around with the numbers.
 
Pony_Driver said:
Without knowing your tax liability and insurance costs here's a swag at what your payment looks like.
Click to expand...

Some figured since I have paperwork sitting here.
assessed value 83,900
fair market value 93,600
net property tax 1161
escrow YTD 2350
insurance disbursements YTD 571
Current mortgage payment 550

I always pay more than that with the extra toward principal. Sounds like down payment will be the fun part.
 
ConwayMuddy said:
Some figured since I have paperwork sitting here.
assessed value 83,900
fair market value 93,600
net property tax 1161
escrow YTD 2350
insurance disbursements YTD 571
Current mortgage payment 550

I always pay more than that with the extra toward principal. Sounds like down payment will be the fun part.
Click to expand...

You won't need a down payment if you refinance since you will have more than 20% equity.

Assuming a home value of 90k and you only owe 58k on it then you have just over 35% equity in the house.
 
I noticed that a couple times as well, OP last two posts you talk about needing to put down payment at refinance. Not only do you not need to spend money, you can take money out but As suggested, I wouldn’t either
 
15 year refi
New Monthly Payment $ 390.85

Monthly Savings $159.15

Difference in Interest $68,247.62

30 year refi
New Monthly Payment $ 233.72

Monthly Savings $316.28

Difference in Interest $54,461.16


Even using Quickenloans site with the numbers you posted works out to $391.41 a month.
https://www.quickenloans.com/calculator-mortgage
 
Do the fifteen refi, and you’ll own it in less than 10.
 
Wilson said:
Do the fifteen refi, and you’ll own it in less than 10.
Click to expand...

Fuck that! Refinance for 30 and keep paying what you're paying, but know if you have a bad month at work or need a new dryer or whatever you can drop the payment and afford something.
 
RusM said:
Fuck that! Refinance for 30 and keep paying what you're paying, but know if you have a bad month at work or need a new dryer or whatever you can drop the payment and afford something.
Click to expand...

and that way of thinking are the reason banks are in business and have big tall buildings
it isn't rocket science, it is a simple as a budget and sticking to it
Got to remember the banks aren't there for you, they are there for them
 
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